bootstrapping

Bootstrapping is a statistical resampling method that involves drawing repeated samples from a dataset with replacement to estimate sampling distributions. This technique allows for the estimation of standard errors and confidence intervals without requiring complex mathematical formulas. In business, bootstrapping refers to starting and growing a company using personal finances or revenue rather than external investment. This approach forces entrepreneurs to be resourceful and focused on generating early revenue. In computing, bootstrapping describes the process of loading a small initial program that then loads a larger, more complex system. The term originated from the phrase "to pull oneself up by one's bootstraps," suggesting self-sufficiency. Bootstrapping in statistics is particularly valuable when theoretical distributions are unknown or complex. In business contexts, while limiting growth potential, it allows founders to maintain full ownership and control. Computing bootstrapping is fundamental to system initialization across various platforms. Despite context differences, all forms of bootstrapping share the common theme of self-reliance and incremental development.