Asia-Pacific Journal of Business Venturing and Entrepreneurship (벤처창업연구)

The Korean Society of Business Venturing (한국벤처창업학회)
권호 표지

A Case Study on Bootstrapping of Start-up: Focused on Black Ruby Studio

초기 스타트업의 부트스트래핑 사례: (주)블랙루비 스튜디오

  • 원치운 (한양대학교 경영대학) ;
  • 배태준 (한양대학교 창업융합학과)
  • Received : 2019.05.10
  • Accepted : 2019.08.26
  • Published : 2019.08.31
Download PDF
⟨ Previous Next ⟩

Abstract

The purpose of this study is to explain the bootstrapping method to understand the process of overcoming the difficulties experienced by the limited resources of the initial start-up, through the example of Black Ruby Studio. Most nascent start-ups have constrained resources. This problem is a subject that is constantly being repeated in entrepreneurship research. Despite these problems, there are relatively few studies detailing the process of overcoming the initial difficulties of start-up. Bootstrapping is described as a way to reduce external inflows, reduce risk, and resolve funding issues internally. Many start-ups initially rely on bootstrapping as a way to solving scarce funds and limited resources. Therefore, this study reviewed the prior literatures in bootstrapping, and used 32 detailed item bootstrapping methods suggested in Winborg & Landstrom(2001) on bootstrapping in order to understand bootstrapping concept of start-up. This study gives insightful implication to prospective founders by using the bootstrapping method for survival of start-up and the process of overcoming the difficulties in the start-up.

본 연구는 초기 스타트업의 제한된 자원으로 겪게 되는 어려움을 극복하는 과정을 이해하기 위해 부트스트래핑(bootstrapping)방법을 적용하여, 한양대학교 학생창업 기업인 (주)블랙루비 스튜디오의 사례를 통해 설명하고자 하였다. 스타트업 초기 겪게 되는 자원 조달에 대한 문제는 끊임없이 반복되어 오고 있는 연구 주제이다. 이와 같은 문제에도 불구하고 창업 관련 연구 분야에서 스타트업의 초기 어려움을 극복하는 과정을 자세히 설명하는 연구들은 비교적 많지 않다. 스타트업들은 창업을 시작할 때, 부족한 자금과 제한된 자원을 해결하기 위한 방법으로 외부의 자금 유입을 줄여 위험을 감소시키고 내부적으로 자금 문제를 해결하는 방법인 부트스트래핑에 의존하게 된다. 따라서, 본 연구에서는 스타트업의 부트스트래핑 개념을 이해하기 위해 관련된 선행연구 검토와 부트스트래핑에 관한 Winborg & Landstrom(2001)의 연구에서 제시된 32개의 세부적인 항목별 부트스트래핑 방법을 바탕으로 블랙루비 스튜디오의 창업자인 소재우 대표와의 수 차례의 심층 인터뷰를 통해 스타트업의 생존을 위한 부트스트래핑 방법 활용과 창업 초기 어려움을 극복하는 과정을 면밀히 분석하여 예비창업자들에게 통찰력 있는 시사점을 전한다.

Keywords

References

  1. Auken, H. E. V., & Neeley, L. (1996), Evidence of bootstrap financing among small start-up firms, Journal of Entrepreneurial and Small Business Finance, 5(3), 235-249.
  2. Baker, T., & Nelson, R. E. (2005), Creating something from nothing: Resource construction through entrepreneurial bricolage, Administrative science quarterly, 50(3), 329-366. https://doi.org/10.2189/asqu.2005.50.3.329
  3. Berger, A. N., & Udell, G. F. (1998), The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle, Journal of banking & finance, 22(6-8), 613-673. https://doi.org/10.1016/S0378-4266(98)00038-7
  4. Bhide, A. (1992), Bootstrap Finance: the art of start-ups, Harvard business review, 70(6), 109-117.
  5. Blackruby studio(2019), https://blackruby.studio/
  6. Brush, C. G., Greene, P. G., & Hart, M. M. (2001), From initial idea to unique advantage: The entrepreneurial challenge of constructing a resource base, Academy of Management Perspectives, 15(1), 64-78. https://doi.org/10.5465/ame.2001.4251394
  7. Carter, R. B., & Van Auken, H. (2005), Bootstrap financing and owners' perceptions of their business constraints and opportunities, Entrepreneurship & Regional Development, 17(2), 129-144. https://doi.org/10.1080/08985620500067548
  8. Cassar, G. (2004), The financing of business start-ups, Journal of business venturing, 19(2), 261-283. https://doi.org/10.1016/S0883-9026(03)00029-6
  9. Cosh, A., Cumming, D., & Hughes, A. (2009), Outside entrepreneurial capital, The Economic Journal, 119(540), 1494-1533. https://doi.org/10.1111/j.1468-0297.2009.02270.x
  10. Ebben, J., & Johnson, A. (2006), Bootstrapping in small firms: An empirical analysis of change over time, Journal of Business Venturing, 21(6), 851-865. https://doi.org/10.1016/j.jbusvent.2005.06.007
  11. Freear, J., Sohl, J. E., & Wetzel Jr, W. E. (1995), Angels: personal investors in the venture capital market, Entrepreneurship & Regional Development, 7(1), 85-94. https://doi.org/10.1080/08985629500000005
  12. Grichnik, D., Brinckmann, J., Singh, L., & Manigart, S. (2014), Beyond environmental scarcity: Human and social capital as driving forces of bootstrapping activities, Journal of Business Venturing, 29(2), 310-326. https://doi.org/10.1016/j.jbusvent.2013.02.006
  13. Harrison, R. T., Mason, C. M., & Girling, P. (2004), Financial bootstrapping and venture development in the software industry, Entrepreneurship & Regional Development, 16(4), 307-333. https://doi.org/10.1080/0898562042000263276
  14. Korea Institute of Startup & Entrepreneurship Development (2018), 2017 Startup Statics Daejeon;
  15. Ki Hwan, K., & Jong In, C. (2015), The Analysis of Failure Causes on Technology Venture: A Start-up case of the Government Research Institute(GRI), Asia-Pacific Journal of Business Venturing and Entrepreneurship 10(4), https://doi.org/10.16972/APJBVE.10.4.201508.167
  16. Lahm Jr, R. J., & Little Jr, H. T. (2005), Bootstrapping business start-ups: Entrepreneurship literature, textbooks, and teaching practices versus current business practices?, Journal of Entrepreneurship Education, 8, 61.
  17. Manigart, S., & Struyf, C. (1997), Financing high technology startups in Belgium: An explorative study. Small Business Economics, 9(2), 125-135. https://doi.org/10.1023/A:1007967722346
  18. Neely, L., & Van Auken, H. (2012), An examination of small firm bootstrap financing and use of debt, Journal of Developmental Entrepreneurship, 17(01), 1250002. https://doi.org/10.1142/S1084946712500021
  19. Rujoub, M. A., Cook, D. M., & Hay, L. E. (1995). Using cash flow ratios to predict business failures. Journal of Managerial Issues Vol. 7, 75-90.
  20. Sapienza, H. J., Korsgaard, M. A., & Forbes, D. P. (2003), Advances in Entrepreneurship, Firm Emergence and Growth: THE SELF-DETERMINATION MOTIVE AND ENTREPRENEURS'CHOICE OF FINANCING, Bingley: Emerald Group Publishing Limited.
  21. Sirmon, D. G., & Hitt, M. A. (2003), Managing resources: Linking unique resources, management, and wealth creation in family firms, Entrepreneurship theory and practice, 27(4), 339-358. https://doi.org/10.1111/1540-8520.t01-1-00013
  22. Smith, J., Smith, R. L., Smith, R., & Bliss, R. (2011), Entrepreneurial finance: strategy, valuation, and deal structure, California: Stanford University Press.
  23. Stinchcombe, A. L. (1965), social structure and Organizations, Chicago: Handbook of organizations, Rand McNally, 44(2), 142-193.
  24. Timmons., & Jeffry A. (1999). New venture creation 5th ed., London: McGraw-Hill.
  25. Ucbasaran, D., Shepherd, D. A., Lockett, A., & Lyon, S. J. (2013), Life after business failure: The process and consequences of business failure for entrepreneurs, Journal of Management, 39(1), 163-202. https://doi.org/10.1177/0149206312457823
  26. Vanacker, T., Manigart, S., Meuleman, M., & Sels, L. (2011), A longitudinal study on the relationship between financial bootstrapping and new venture growth, Entrepreneurship & Regional Development, 23(9-10), 681-705. https://doi.org/10.1080/08985626.2010.502250
  27. Venkataraman, S. (2003), Entrepreneurship: Creating something new and of enduring value with very limited resources, The portable MBA (4th ed.), New York: Wiley.
  28. Wiklund, J., Baker, T., & Shepherd, D. (2010), The age-effect of financial indicators as buffers against the liability of newness, Journal of business venturing, 25(4), 423-437. https://doi.org/10.1016/j.jbusvent.2008.10.011
  29. Winborg, J., & Landstrom, H. (2001), Financial bootstrapping in small businesses: Examining small business managers' resource acquisition behaviors, Journal of business venturing, 16(3), 235-254. https://doi.org/10.1016/S0883-9026(99)00055-5
  30. Ye, Q. (2017), BOOTSTRAPPING AND NEW-BORN STARTUPS PERFORMANCE: THE ROLE OF FOUNDING TEAM HUMAN CAPITAL, Global Journal of Entrepreneurship, 1(2), 53-72.