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(2016) found that the main constraints the households encounter with various livelihood to meet
households’ needs are lack of assets, lack of farm land for housing purposes, and unfavorable
climate conditions
Furthermore, similar studies have shown the impact of lack of households’ assets and poor
institution on weakening the expansion of non-farm activities. A comparable study by Yohannes
Yonas and Tafese Mathewos (2017) found that the challenges of livelihood diversification are low
awareness level of farmers to adopt modern technology, lack of credit, weal extension services,
lack of skills, and wrong attitude of local communities and households average incomes. Similarly,
Sileshi Mengiste, (2015) reported that the main challenges of diversification are communal
resources administration system, lack of financial services and lack of proper extension services.
3. Conclusions
The non-farm activities are the leading activities in sustainable livelihood of Ethiopia. They
produce diverse employment opportunities among rural households across the country wide. Thus,
the main aim of the paper was to review the contribution of non-farm livelihood strategies on
sustainable livelihood of rural households in Ethiopia.
Based on several studies results, rural households follow diverse assortment of non-agricultural
and agricultural livelihood activities in Ethiopia. These activities contribute to the households’
livelihood improvement of rural households, while, the share into rural households income is
decreasing. Such a major contribution of non-farm livelihood activities are mainly reducing
vulnerability, increasing incomes and improving food security among the rural households in
Ethiopia. Regardless of that, a narrow data were found that has summarized the contribution of
rural non-farm activities in Ethiopia. The previous studies outcomes have also showed that several
challenges weaken the entrance of rural households into the non-farm livelihood strategies. These
challenges are associated with lack of assets, poor institutions and harsh peripheral context.
In general, the Government of Ethiopia in collaboration with different Private Organizations need
to create an expedient environment in non-farm activities among rural communities. Similarly, the
government of Ethiopia should also strengthen the non-agricultural activities across the country.
Finally, the paper articulated the further study on the contribution of the non-farm activities on the
improvement of rural households’ livelihood in Ethiopia.
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