Assessing challenges of non-farm livelihood diversification in Boricha Woreda, Sidama zone

Abstract

This study was conducted to assess key livelihood strategies and to examine major socio-economic constraints that hinder households from engage in diversified activities, in two Peasant Associations of Boricha Woreda, Southern Ethiopia. From the two Peasant Associations, 110 households were selected through simple random sampling technique. Both primary and secondary data were collected to come up with dependable conclusion. Primary data were collected by conducting survey and participatory rural appraisal tools. The primary data was gathered through structured household questionnaire and further supplemented by key informant interview and focus group discussions. Quantitative data which was collected from primary sources were analyzed using SPSS 20.0 version and reported through descriptive statistics like mean, standard deviation, percentage and frequency distribution. In the study area, rural households engaged in portfolio of livelihood activities though farming activity taken as the major share (87%) followed by trade (68%) and other off-farm activities. However, the participation in diversified livelihoods is constrained by low awareness level of farmers to adopt modern technologies, lack of credit, weak extension services, lack of skill, wrong attitude of the local community, and household average income. Based on the findings, strengthening access of start-up capital to initiate small businesses through cooperatives and credit institutions, providing vocational training to increase households’ skill to use locally available resources, improving access of rural infrastructure, strengthen the implementation of functional adult literacy program and increasing awareness level of the community through training were suggested as recommendations. Key words: Assets, livelihood diversification, migration, non-farm.