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This paper explores the growth of the craft beer sector in a northern Swedish rural setting, with a particular focus on how small-scale brewers manage to fund their activities and ventures. It connects craft brewing with the concept of bootstrapping, a theoretical foundation into understanding alternative paths of funding business operations. This study has used qualitative measures in order to reach a deeper understanding of the research field. More specifically, a case study has been performed in the peripheral, northern Swedish region of Jämtland. It is a comprehensive case study, including interviews with all of the 14 craft brewers in the region, as well as observations of brewing sites. The study established that most of the brewers have funded their business activities with alternative funding and bootstrapping methods. Also, the brewers try to keep external financing to a minimum, but it is an inevitable necessity for most of them to use some type of external funding in the start-up process. Contributing to the findings is also the frequency whereby the brewers use the regions other brewers as a resource network, thus elevating the social bootstrapping dimension to a highly important survival technique.Keywords: bootstrapping, craft beer, finance, micro- and small business

The evolution of the craft beer sector has been gaining traction around the world since the 1980s, developing from factors such as an increased demand for alternative and locally distinct flavours in beer, increased interest in pairing food with the right type of beer, and increased income levels. Meanwhile, the economic and political contexts for establishing and running craft breweries differ between cities, regions, and nations. This study takes its point of departure from the producer perspective of the craft beer sector in the alcohol monopoly of Sweden, where the interest in craft breweries has also developed quickly over the last decades. The main purpose of the study is to contribute to the understanding of producer perspectives on operating in an alcohol monopoly, and how this effects development opportunities. The study has an explorative, mixed methods approach and is based on a survey encompassing all Swedish craft brewers as well as qualitative data from northern Sweden, including interviews with craft beer producers, site visits, and document analysis. The conclusions provide a complex picture of the Swedish alcohol monopoly and its impact on the craft brewers, and hence the development of the craft beer sector. However, the critical dimensions are more pronounced among the producers, suggesting that the Swedish organisation favours large-scale breweries, creates uncertain market conditions, leads to quick and unexpected decisions, and creates logistical difficulties. From an international comparative dimension, this indicates that the craft beer sector in Sweden could benefit from and grow even stronger with modifications to the market conditions according to the situation in other geographical contexts.