In another post on Jeff Cornwall's upcoming book, the author, blogger and director of the Center for Entrepreneurship at Belmont University suggests that more than lack of funds may inspire the bootstrapping approach.

Here is a summary of Jeff's observations on the topic:

• Bootstrapping keeps more equity for the owner. Simply put, the more money invested the less the entrepreneur can truly own and the more is owned by banks or outside investors.
• Some investors may be up to no good. Jeff brings up the rarely discussed possibility that investors may move in for no other reason than to take over a profitable looking business by exploiting an entrepreneurs need for money.
• Too many cooks spoil the stew. Throwing a bunch of outside investors into the mix during the early stages of a startup may overcomplicate things because of the added dynamic they bring to the situation. Suddenly there are more considerations than simply building a profitable business.
• More debt means less money. Your business will have to make more cash and be less able to survive tough economic times, not handicaps to be envied in a startup situation. Instead, a company started with nearly nothing needs less revenue to turn a profit.
• Your slice of pie is smaller. As suggested above, when the time comes to sell your business you'll be able to keep a lot less with a bunch of investors along for the ride. Bootstrap a profitable business and you may get to keep much more.
• Bankers can lay down the law. Want to make your own decisions about how and when to expand your business, how much to pay owners and workers etc. Than bootstrapping will keep you in the drivers' seat.
• You could loose your shirt...or your house, or your car. Seriously, a bank may demand personal assets as collateral. Should you sign away your house to take a chance on that coffee shop you've always dreamed about? This is NOT a trick question.

Here are more reasons an entrepreneur might choose the bootstrap approach from Greg Gianforte.