Bootstrapping finance involving the use of resources to start and grow a venture at the lowest possible or even at no cost, acquires especial significance in times of a credit crunch. In this paper we explore, for the first time the use of bootstrap finance techniques in a small country European...

This study examines the relationships between entrepreneurs' use of bootstrap financing methods and access to short- and long-term debt capital. By providing additional funding options, bootstrap financing helps alleviate liquidity issues by providing small firms additional sources of capital...

The choice of financing source is particularly difficult for a small firm due to the high uncertainty about future liquidity requirements. We show that the techniques of continuous time arbitrage and stochastic control theory may be used not only to value such firms but also to determine the...