New micro-enterprises in the retail sector are vital to the growth of the South African economy. Inaccessibility to formal debt
and equity markets is one of the primary causes of the failure of new micro-enterprises in South Africa. Innovative financing
methods are vital to the survival of new micro-enterprises in South Africa. This study investigates the financial bootstrapping
methods employed by new micro-enterprises in the retail sector in South Africa. Data was collected through the use of selfadministered
questionnaires in a survey. Descriptive statistics and factor analysis were used for data analysis. Factor analysis
identified four bootstrapping methods from twenty nine question items. These are owners’ resources, accounts receivable
management, sharing resources and delaying payments. Recommendations to improve financial bootstrapping by microenterprises
are suggested.