ISSN: 2265-6294

A Research Project Examining Small Businesses Owned By Women In Coimbatore And Their Practice Of Self-Funding.

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Ashvini Sundararaju, Theivanayaki M

Abstract

Financial bootstrapping can be understood as self-financing with an aim of starting and growing a business if any other source of investment is not considerable. This method of capital funding tends to build sustainable growth in brands with innovative idea and sufficient market knowledge. Entrepreneurs use their savings, acquire loan from family or friends, use credit card for initial transactions or sell their personal assets to acquire money for investing in their own company. In current trends, women seek financial independence by venturing into businesses. Women entrepreneurs face most problems during funding at different phases of their business. Startups lead by women entrepreneurs are growing substantially over years in every size of business and markets. The purpose of this study is to determine the bootstrapping strategies of small businesses of Coimbatore by understanding their challenges in funding and organizing the bootstrapped funds. This study has identified that most of the entrepreneurs use their salary from previous/existing jobs or seek loans from their friends or family. They use techniques like renting or buying second-hand assets as their way delegate funds. Their major challenge is customer acquisition and prioritizing expense.

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