Which funding option uses the owner's own savings to fund the business?

• A. Bootstrapping
• B. SBA loans
• C. SBA grants
• D. Investor

Answer: (A)

Bootstrapping means funding a business with the owner's own savings and resources rather than seeking outside money. This approach keeps full ownership and control, using personal funds and early revenue to grow the business without taking on debt or giving up equity. It’s a common starting point when you want to validate an idea with limited risk of external influence or complex financing. External options like SBA loans involve borrowing and must be repaid (often with interest and collateral), grants are competitive and usually earmarked for specific programs, and accepting investment brings in capital at the cost of ownership and some control. So using the owner’s savings directly is the clearest way to fund the venture through bootstrapping.