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| Illustration By Ai |
Creative startups in Makassar are using bootstrapping strategies to survive limited access to formal financing, according to a 2026 study by Dwiyanti, Hasisa Haruna, and Mildayanti of Universitas Negeri Makassar. The research examined how five early-stage creative startups managed finances through internal funding, cost reduction, shared resources, customer-funded growth, and informal social networks. The findings show that these entrepreneurs can turn limited resources, community trust, and digital tools into practical alternatives to bank loans and outside investment.
Why Financing Is Difficult for
Creative Startups
Access to capital remains a major
challenge for early-stage businesses, particularly creative startups that often
operate with limited physical assets that can be used as collateral. The study
notes that creative entrepreneurs frequently face uncertain cash flows and must
rely heavily on personal resources while operating without the financial safety
nets available to larger companies.
The challenge can become more
pronounced outside major metropolitan startup centers. Makassar is an emerging
regional entrepreneurial hub, but its startups may have less direct access to
concentrated venture capital networks and angel investors than businesses in
major metropolitan markets.
For creative founders, this
environment encourages alternative approaches to financial management. Instead
of depending primarily on bank loans or venture capital, entrepreneurs can use
relationships, existing skills, flexible labor, shared infrastructure, and
customer payments to keep their businesses operating.
The research describes this
approach as financial bootstrapping—a collection of strategies that
allows entrepreneurs to secure and manage resources while minimizing dependence
on external equity or bank credit.
How the Study Examined Startup
Financial Strategies
Dwiyanti, Haruna, and Mildayanti
used a qualitative phenomenological research design to understand the real
financial experiences of creative entrepreneurs in Makassar City.
The researchers selected five
creative startups that had operated for at least two years, primarily relied on
bootstrapping rather than venture capital or bank loans, and remained active
during the research period. The startups represented creative-sector activities
such as digital media, design, fashion, and culinary craft.
The research team conducted
in-depth interviews with startup founders and key financial decision-makers
between January and April 2026. They also observed business operations and
reviewed supporting documents, including financial records, invoices, and business
profiles.
The researchers analyzed the
information thematically using qualitative analysis software and organized the
findings around four major financial dimensions: cost minimization, resource
sharing, cash acceleration, and social network utilization.
A Three-Box Method was also used
to assess the intensity of bootstrapping practices. The study found a high
level of reliance on social networks and operational cost minimization, with
scores above 150 classified as “High.”
Cost Cutting and Social
Networks Lead the Strategy
One of the clearest findings is
that Makassar’s creative startups strongly depend on operational cost
minimization and social networks as substitutes for formal capital.
Rather than purchasing expensive
assets, founders use flexible labor arrangements, personal skills, digital
platforms, and other existing resources. This approach reduces fixed costs and
lowers the amount of revenue a business needs to cover its operating expenses.
Resource sharing is another
important strategy. Startups may share coworking spaces, production equipment,
or marketing activities. According to the researchers, collaboration allows
small companies to access facilities and technology without individually
carrying the full investment cost.
Customer payments also play a
central role. Creative founders prioritize internal funds and
customer-generated cash before seeking external financing. Advance payments and
project milestone deposits can accelerate cash collection and help stabilize
working capital.
Local relationships provide
another layer of financial protection. Trust-based business networks can
facilitate extended supplier credit, interest-free peer loans, and flexible
payment arrangements. In this context, social capital can function as an informal
credit safety net when formal financing is difficult to obtain.
Digital Tools Make
Bootstrapping More Efficient
Technology is also changing how
bootstrapping works.
The researchers found that
cloud-based accounting software and digital payment systems can reduce
administrative costs and shorten the time needed to collect customer payments.
These tools allow lean startups to monitor cash flow more closely without maintaining
large finance departments.
For creative startups in
Makassar, digital technology therefore does more than reduce expenses. It can
help regional businesses connect with broader markets while maintaining
relatively lean financial structures.
The study suggests that
bootstrapping is not simply a temporary response to a lack of funding. For
these startups, it can become an intentional financial management strategy
designed to maintain independence and control.
As Dwiyanti, Haruna, and
Mildayanti of Universitas Negeri Makassar explain through their analysis, resource
scarcity can become a source of entrepreneurial resilience when founders
deliberately combine internal capabilities, social networks, shared resources,
and lean operating practices.
The Strategy Has Limits
Bootstrapping can help startups
survive, but the researchers also identify important trade-offs.
Continuous cost cutting can make
it difficult for a company to scale rapidly or invest sufficiently in research
and development. Excessive reliance on personal resources may also contribute
to founder burnout, under-capitalization, and missed opportunities that require
substantial immediate investment.
This means startup founders must
balance financial independence with the need to invest in future growth.
The study recommends that
entrepreneurs use digital accounting and payment tools to strengthen
working-capital management while avoiding excessive cost reductions that could
undermine expansion.
Implications for Policymakers
and Startup Ecosystems
The findings also have
implications beyond individual businesses.
The researchers argue that
conventional credit systems based heavily on physical collateral may not
adequately serve asset-light creative startups. Policymakers and financial
institutions could consider alternatives such as revenue-sharing micro-equity funds,
community-backed credit guarantees, and lending mechanisms that recognize
intellectual property and other intangible assets.
Regional incubators and
business-support organizations could also provide training focused on cash-flow
management, customer-funded growth, and resource sharing. Shared equipment
centers and collaborative workspaces could further reduce the upfront financial
burden for new ventures.
The study ultimately presents
Makassar’s creative startup ecosystem as an example of how regional
entrepreneurs can build financial resilience without immediate dependence on
traditional corporate capital.
However, the researchers caution
that the findings come from a small qualitative sample concentrated in
Makassar. The results therefore cannot automatically be generalized to other
industries or regions. They recommend larger quantitative studies and longer-term
comparisons between regional and metropolitan startup ecosystems.
Author Profiles
Dwiyanti — Universitas
Negeri Makassar and corresponding author of the study. The article identifies
her affiliation and research role but does not provide an academic degree or
specific field of expertise in the author information.
Hasisa Haruna —
Universitas Negeri Makassar. The article identifies her university affiliation
but does not state an academic degree or specific field of expertise.
Mildayanti — Universitas
Negeri Makassar. The article identifies her university affiliation but does not
provide an academic degree or specific field of expertise.
Source
Article: “Analysis of
Bootstrapping-Based Financial Management Strategies in Creative Startups in
Makassar City”
Journal: International Journal of Applied and Advanced
Multidisciplinary Research (IJAAMR)
Publication Year: 2026
Authors: Dwiyanti, Hasisa Haruna, and Mildayanti
Affiliation: Universitas Negeri Makassar
Volume: 4, Number 7, pp. 657–672
DOI: https://doi.org/10.59890/ijaamr.v4i7.275
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