one consensus definition of bootstrapping sees it as "a collection of methods used to minimize the amount of outside debt and equity financing needed from banks and investors". the majority of businesses require less than $10,000 to launch, which means that personal savings are most often used to start. in addition, bootstrapping entrepreneurs often incur personal credit-card debt, but they also can utilize a wide variety of methods. while bootstrapping involves increased personal financial risk for entrepreneurs, the absence of any other stakeholder gives the entrepreneur more freedom to develop the company.