sustainability Article Impact of Small-to-Medium Size Forest Enterprises on Rural Livelihood: Evidence from Khyber-Pakhtunkhwa, Pakistan Muhammad Zada 1 , Syed Jamal Shah 2 , Cao Yukun 1,*, Tariq Rauf 1, Naveed Khan 1 and Syed Asad Ali Shah 2 1 College of Economics & Management, North East Forestry University, Harbin 150040, China;
[email protected] (M.Z.);
[email protected] (T.R.);
[email protected] (N.K.) 2 School of Management, Harbin Institute of Technology, Harbin 150001, China;
[email protected] (S.J.S.);
[email protected] (S.A.A.S.) * Correspondence:
[email protected] Received: 1 April 2019; Accepted: 21 May 2019; Published: 26 May 2019 Abstract: Small-to-medium-sized forest enterprises (SMFEs) offer numerous benefits to rural communities and society as a whole. Less attention has been paid to the sustainability of SMFEs in terms of improving the livelihood of rural communities. This study aims to assess the impact of SMFEs in Khyber-Pakhtunkhwa (KPK), Pakistan, and evaluate their potential role in reducing poverty and promoting rural livelihoods. Primary data were collected from 350 household heads and analyzed using econometric methodologies: The ordinary least squares (OLS) and ordered logit model. Household income, a wealth index, and five capitals of sustainable livelihood have been considered to gauge the impact of SMFEs. The results of the study reveal that there is a strong positive association between SMFEs and improvement in a rural community’s livelihood. The results further showed that households engaged in SMFE-related activities earn 3% more income and possess about 24% more assets. These findings are robust for various dimensions of sustainable livelihood and show positive effects of SMFEs on livelihood assets.