Pattern, Challenges and Prospect of Livelihood Diversification Through Small Business. A Comparative Study in Three Climatic Zone of Rural Ethiopia

The study is aimed at exploring patterns and prospects of livelihood diversification through small business using a comparative study in three climatic zone of rural Ethiopia. Although rural households, who are primarily agricultural, used to deploy their resources between farm and rural small business to diversify incomes and reduce the inherent risk embedded in the dependence of agricultural production, little attention is given by policy makers to diversification out of agriculture as a peasant survival strategy. With respect to the types of small business, participant households in all climatic zone are engaged in different business activities from which goat, sheep, fatten ox and chat trading are the major one. To exploit the benefit that could be obtained from small business and thereby improve food security in the rural area, proper attention should be given by the government to enhance the existing small business as expansions of such schemes are a necessary condition for the gradual reduction of agricultural labor force. Keywords: Livelihood diversification, Small business, Rural households DOI: 10.7176/EJBM/11-28-01 Publication date:October 31st 201