View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by IDS OpenDocs MEKELLE UNIVERSITY COLLEGE OF BUSINESS AND ECONOMICS DEPARTMENT OF MANAGEMENT POSTGRADUATE PROGRAM(DVS) THE ROLE OF NON-FARM ACTIVITIES IN SUSTAINING RURAL LIVELIHOOD, (IN THE CASE OF ENDERTA WOREDA,TIGRAY REGIONAL STATE) BY: MEAZA TADESSE W/GEBRIEL A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF ARTS DEGREE IN DEVELOPMENT STUDIES (REGIONAL AND LOCAL DEVELOPMENT) PRINCIPAL ADVISOR: BIHON KASSA (ASSISTANT PROFESSOR) . CO-ADVISOR: TIGIST TESFAY (MPP) JUNE, 2014 MEKELLE, ETHIOPIA DECLARATION I, Meaza Tadesse, have been a student of Master of Development Studies (MA) in the Department of Management, College of Business and Economics (CBE), Mekelle University (MU), Mekelle since July, 2010. I do hereby declare that the thesis entitled, “The role of non-farm activities in sustaining rural livelihood: Enderta wereda” for the Master‟s Degree of this University, is my own piece of original research work. This thesis is submitted for the Master of Arts (MA.) in Local and Regional Development in the Department of Management, CBE, under the direct supervision and guidance of principal advisors Bihon Kassa(Assistant Professor) and co-adviser Tigist Tesfay(Mpp), CBE, MU, Mekelle. The manuscript of this thesis has been thoroughly scrutinized by them. I also assert that this thesis has not been submitted earlier for the award of any other degree or diploma anywhere else. With high regards, Candidate Name: Meaza Tadesse ID. No.: CBE/PS064/02 Signature: _____________________ Date: _____________________ Management, CBE, MU, Mekelle i CERTIFICATION This is to certify that Meaza Tadesse has been a bona fide student of Master of Development Studies in the Department of Management, College of Business and Economics (CBE), Mekelle University (MU), Mekelle since September, 2010. With regard to the thesis entitled on “The role of non-farm activities in sustaining rural livelihood: Enderta wereda” for Masters of Arts (MA.) Degree in Local and Regional Development in the Department of Management, CBE, We certify that she has carried out the research work under our direct supervision and guidance. The manuscript of the thesis has been thoroughly scrutinized by us in view of the requirements of the regulations of the University. This thesis does not contain any conjoint research work with us or with anyone else. The final copy of the thesis which is being submitted to the university office has been carefully read for its material and language and she has completed her research work to our entire satisfaction. To the best of our knowledge, the entire thesis comprises the candidate‟s own piece of original research work. Thus, the thesis is worthly of consideration for the award of MA. Degree in Development Studies in specialization of Local and Regional Development. With high regards, Internal Examiner External Examiner Name Tadesse Getacher Name: ___________________________ Sig.: ______________ Sig.: _________________ Date: _______________ Date: __________________ Principal Advisor Co-Advisor Name: Bihon Kassa(Assistant professor) Name: Tigist Tesfay (Mpp) Sig.: ______________ Sig.: _________________ Date: _______________ Date: __________________ Management, CBE, MU, Mekelle ii ACKNOWLEDGEMENTS Foremost, I would like to thank GOD for his love, protection and blessing me with health and life opportunities including the opportunity for this study. Secondly, I would like to extend my thanks to my principal advisor Bihon Kassa (Assist Prof.) for his valuable and constructive comments, suggestions and overall assistance from the early stage to the completion of the study. Without his support and guidance this paper would not have been materialized. And Co-adviser Tigist Tesfay (Mpp), for overall suggestions in doing the study. Thirdly, I would like to extend my thanks to all my teachers of Development Studies Department. My heartfelt thanks go to my husband Ato G/medhin G/tsadkan for his untiring support and inspiration helped me very much in carrying out this study. Special thanks also go to Awet Tadessse, Dawit Tadesse, Yared Tadesse and Asmelash Bezabih for their support, encouragement, unreserved advice and consultation. I am very grateful to all my informants, The office of agriculture and Rural Development staffs, especially Berihu,Halefom, Tesfay,Gebru,Romha and Birhanu for their assistance during the data collection time. Without their cooperation the data would not have been collected in time. And Special thanks and appreciation also goes to Mengstu, who is my informant from Micro and Small Enterprise of Enderta Woreda in sharing his experiences and knowledge. Finally my heartfelt gratitude and appreciation goes to my mom, dad and other family members for their love, support, and encouragement. God bless all!!! iii ABSTRACT The research was conducted with the objective of examining and studying the role of non-farm activities in sustaining the livelihood of respondents in Enderta Woreda .In order to achieve this objective a primary data was collected from 190(one hundred ninety) systematically selected households using structured and unstructured questionnaires. Moreover; key informants and focus group discussion had been also used to obtain detailed information .For the data analysis purpose; descriptive statistics including mean, frequency and percentages were used to describe the livelihood resources/assets of Enderta woreda, non-farm rural diversification. It was identified and analyzed the key constraints and opportunities as well as the contribution of nonfarm activities existing in the study area. Generally, the study showed that rural households in the study Tabias have diversified incomes engaged in diversified activities importantly nonfarm livelihood diversification‟s a result the livelihood of the rural household have been changed. They have also Lack of access to sufficient fixed and working capital which is a major constraint to undertake high-return non-farm activities. Here, the skill and knowledge are the key inhibitors of diversification, infrastructure and market imperfection due to brokers that are found to constrain diversification. Finally, farm households should be aware to nonfarm diversification; further more efforts should be made to improve skill and knowledge of farmers through provision of training. Furthermore, it should be work intensely in access to credit service and increase the amount of money saved. Key words: Sustainable rural livelihoods, livelihood asset, livelihood strategy, nonfarm livelihood diversification iv ACRONYM’S ADLI Agricultural Development-led Strategy CSA Central Statistics Agency DFID Department for International Development LA Livelihood Approaches MFI Micro Finance Institution MoFED Ministry of Finance and Economic Development MSE Micro and Small Enterprise PASDEP Plan for Accelerated and Sustainable Development to End Poverty RNFE Rural Non –Farm Economy RUL Rural Urban linkage SL Sustainable Livelihood SLA Sustainable Livelihood Approaches SPSS Statistical Package for Social Science UNDP United Nations Development Program v Table of Contents Title Page DECLARATION ............................................................................................................................................................ i CERTIFICATION .........................................................................................................................................................ii ACKNOWLEDGEMENTS......................................................................................................................................... iii ABSTRACT ................................................................................................................................................................. iv ACRONYM‟S ............................................................................................................................................................... v Title .......................................................................................................................................................................... vi CHAPTER ONE: INTRODUCTION ........................................................................................................... 1 1.1. Background of the Study............................................................................................................... 1 1.2. Statement of the Problem .............................................................................................................. 3 1.3. Research Questions ....................................................................................................................... 5 1.4. Objective of the Study................................................................................................................... 5 1.4.1. General Objective of the Study ............................................................................................. 5 1.4.2. Specific Objectives of the Study ........................................................................................... 5 1.5. Significance of the Study .............................................................................................................. 6 1.6. Scope and Limitations of the Study .............................................................................................. 6 1.6.1. Scope of the study ................................................................................................................