Question

"Thomas has started a new business venture for which he has been using highly economical resources, such as the market research data available in public libraries, low-interest funds borrowed from national banks, and equipments hired on lease. This technique used by Thomas to overcome resource constraints in his start-up firm is best known as _____."

Answer 1

Answer:

Bootstrapping

Explanation:

Bootstrapping is a business term which means starting and growing a business or company without any external resources but personal resources of the entrepreneur such as personal savings, personal equipment like computers, personal landed property or space, etc. Such company or business started and expanded based on the personal resources of the entrepreneur and the income the business generated.

Advantages of Bootstrapping a company.

a. There is total control over such business with no external influence.

b. Careful resource management.