Title
Rural Nonfarm Income Diversification at Household Level: In Drought Prone Areas of North Ethiopia,Used
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Crop and livestock production is no longer the only sources of rural households' livelihood. Hence, many policy makers have an intense interest in promoting incomediversification activities via non farm income diversification at household level. Thus, the study has attempted to identify how diversification is perceived and explored the major factors that determine rural household income diversification and assessed the implication of adopting nonfarm income generating activities. A number of nonfarm activities have been identified from which sand and stone quarrying, are the major one followed by livestock trading, pottery making and petty trading. Insufficient startup capital, absence of local infrastructure services, and lack of appropriate entrepreneurial skills are identified as the major constraints that hinder households' participation in nonfarm income generating activities. Therefore, rural development policy should give emphasis to rural nonfarm sector through improving access to credit, infrastructures and marketing information.
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