The Role of Nonfarm Activities on Income Generation to Rural Household

Africa in general, Ethiopia in particular has not yet had a successful agricultural revolution and as a vast majority of rural population remains trapped in poverty. Given past failures in promoting agricultural development, Ethiopian policy makers and donors are looking to the rural non-farm economy as an easier option for sparking a successful rural transformation. There for, rural non-farm activities are the most gifted agricultural activities in Ethiopia. Non-farm activities consists of all (national accounts) activities that are all public and private services and public administration in rural areas of Ethiopia. In concluding it consist of a few large companies (most big agribusinesses are located in urban areas), many micro, small and medium enterprises, cooperatives, producer groups and other community-driven groups. It is a large and usually growing share (usually in excess of one-third) of the overall economy of rural areas of Ethiopia. Hence this book is paramount important by giving a clue to illustrate the existing non-farm activities practice in the various regions of the country.