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Entrepreneurs Converting Unused Goods To Finance Their Business

Getting financing for business in Kenya can be hard for many people considering the amount of paper work and bureaucracy you have to go through to getting a loan. Entrepreneurs have found their golden opportunity to finance their business by selling unused goods that they have.

According to an inventory survey released by Nielsen Kenya, it shows that the unused goods at home has drop by 37% which indicates that people are selling goods that they are not using through on-line classifieds as seen in the second consumer research survey which showed a drop of hoarded house hold items from a high of Ksh. 158 Billion in 2014 to Ksh. 115 Billion in 2015.

I know many of us including myself have already fallen into the trap of buying things that we didn’t even require in the first place and now it is gathering dust somewhere in the house. But its not too late, OLX, an online classified website is committed to helping people unlock the money hidden in used items.

According to OLX Country Manager, Peter Ndiang’ui, People are buying more, consuming more, and in the process wasting more. OLX helps people waste less through collaborative consumption and extending the lifecycle of the products. There has been a significant drop in the value of the unused art collections per capita from Ksh. 144M to Ksh 7M followed by furniture at Ksh. 27M to Kshs 17M while books, DVD’s and CD’s dropped from ksh. 20M to 7M per capita respectively.

See Also: Why Businesses Go for Online Classifieds

Some of top goods stocked across Kenya are electronics, phones and home appliances. Consumers felt more empowered to trade these categories for upgrading or to make quick cash and re-invest the money elsewhere.

Several psychological reasons like emotional attachments and ‘will use it someday’ attitude has also slowed down the sale of unused goods in categories like watches, jewellery, accessories and musical instruments.

There is a new trend that is shows more people are selling off some of their unused items to get some extra cash in return. This will help people to lower their cost of living by being able to offset the cost of upgrading to a new item with the revenue they will earn by selling the older item.

The AC Nielsen research indicates that the more people sell their unused items at home, the more money will flow back into our economy, spurring demand for goods and services.

Overall, other people looking to acquire goods at lower price points, for example a student who has just gotten her/his first job will be able to afford high quality items at lower prices if they opt to buy a used item.

So what do you have in your home that you can sell off for cash today?

Photo Courtesy of Business Daily

About Enock Kiprono

Enock Kiprono is the founder of Fenesi.com & Dealpoa.com. He loves to connect with entrepreneurs that are success driven, passionate, action-taking whose goal is to make a difference in the business world!

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