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Why Bootstrapping Is the Best Choice for Your SME
Karabo Kgophane
May 08, 2025 • Estimated Reading Time: 4 minutes
Good morning. Looking for a way to finance your SME without outside investors? In this brief, we explore why bootstrapping might be the smartest choice for your business. By funding your own growth, you can maintain full control, make decisions quickly, and build a sustainable foundation without compromising your vision.
Bootstrapping means starting and growing your business using your own money, resources, and creativity, without help from investors or loans. It’s all about being resourceful, keeping costs low, and focusing on making a profit early. While growth may be slower, you stay in control and build a strong, self-sustaining business from the ground up. “Read The Full Glossary”
Bootstrapping means funding your startup using personal savings or internal resources like trade credit. Trade credit lets startups get inventory without upfront cash, helping cash flow. It’s interest-free but limits growth. Vendors may offer 30–90 days to pay. Entrepreneurs must plan wisely and avoid growing beyond their means. Read More!
The SME South Africa Funding Summit will unpack the practical art of bootstrapping, funding your business with limited resources. Learn how to stretch your capital, avoid costly mistakes, and know when it’s time to seek external investment. With expert advice from industry leaders like Sheldon Tatchell, this is your chance to build smarter and scale right. Join us on 12 June 2025. Learn More!
Self-funding, also known as bootstrapping, is a smart and practical way to finance your business without relying on loans or investors. If you're employed, consider saving a portion of your salary each month to invest in your business. This allows you to start small while maintaining full control and reducing financial risk.
If your business is already running, you can also reinvest profits instead of taking dividends. This helps you grow steadily and sustainably.
Want to explore more funding options? “Watch the webinar”
