2. Methods
The paper was an intensive literature review of qualitative and quantitative data. These data have been collected through documents analysis by exploring the livelihood strategies, the contribution as well as the challenges of non-farm livelihood activities in Ethiopia. The paper has critically inspected the data from several studies conducted in several places of Ethiopia on non-farm livelihood strategies. These are mainly journal articles, conference proceedings and working papers. As a result, description method and figure forms were employed to organize and summarize the paper data.
3. Discussions
3.1.
Conceptual Definitions
Livelihoods: The livelihood definitions differs from scholar to scholar, organization to organization. For instant, one could describe a livelihood as a combination of the resources used and the activities undertaken in order to live (DFID, 2000). A popular definition is that provided by Chambers & Conway (1992) wherein a livelihood comprises the capabilities, assets (including both material and social assets) and activities required for a means of living.
Livelihood strategies: the livelihood strategies are defined as the range and combination of activities and choices that people make in order to achieve their livelihood goals, including productive activities, investment strategies, reproductive choices, etc. (DFID, 1999). Similarly, Livelihood strategies are composed of activities that generate the means of household survival and are the planned activities that men and women undertake to build their livelihoods (Ellis, 2000).
3.2. Livelihood Strategies in Ethiopia
Several relating studies to the livelihood strategies have been conducted in most part of the country These studies have come up with a number of findings in each study areas. Recent studies indicate that asset, activity and income diversification characterize the livelihood strategies of rural smallholders in SSA (Barrett et al., 2001; Ellis, 2000b). As constructed by Sisay Belay (2013) study, rural people partake in number of strategies, including agricultural intensification and livelihood diversification to attain their livelihood goals.
A study on the effects of livelihood diversification in households’ income by Baharu Gebreyesus (2016) in rural Ethiopia found that rural farm households are facing shortage of farm land due to population density. This has adversely affected livelihood activities in agriculture leading to low
income. As the author demonstrated, to overcome these problems, people tend to diversify their livelihood to improve households’ income.
In Ethiopia, some of scholars have reported the rural non-farm livelihood activities using the dominants economic activities of the area. A study by Yisihak Ergicho and Abebe Markos (2015) in Hadiya zone revealed that lion share income is obtained from farming activity. Moreover, Yenesew et al (2015) survey result in Debre Ellias Woreda showed that much of the rural households (61%) in the study area practice diversified livelihood strategies that combined onfarm activity with off/non-farm activities. In similar way, Agidew Abebe (2018) in Ethiopia also reported that households in the study area engaged in few income generating activities, can be both farm/pastoral and non-farm/pastoral activities. Another study conducted in Lemmo district, Hadiya zone by Desalegn Anchiso & Moges Shiferaw (2016) indicated that the alternative livelihood strategies that were used by the study households were agriculture only, agriculture plus off-farm, agriculture plus non-farm and agriculture plus non-farm plus off-farm.
On the other hand, the non-farm livelihood activities have also been seen in specific perspective In view of that, a Grace Carswell (2002) study on livelihood diversification in southern Ethiopia show that trading is the single most important activity, and is carried out by 14% of all adults. By the same token, Bekele Teshome and Abdi Khalil (2013) also showed that sale of homemade, farm implements and drinks, and non-farm employments was found to be the most important source of off-farm incomes in the study area. Likewise, Benbera et al (2016) publicized that both farm land owners and landless households engage in non-farm activities such as; petty trades, daily labor, local brewery, formal non-farm employment, fire wood and charcoal sale, food preparation and sale, hand crafts, carpentry, transport of produces (from and to the market/farm), sand extraction and sale. As well, Birhanu et al, (2016) findings similarly show that the livelihood of pastoralists diversified into crop production, petty trades, fire wood and charcoal production.
3.3. Contributions of non-farm livelihood diversification in Ethiopia
Non-farm activities have various roles in the improvement of rural people livelihood in Ethiopia. A few results have been reported about the contribution of the non-farm activities in numerous studies settings. Amid of all findings, the researchers have signposted the multi-positive effects of non-farm livelihood activities among Ethiopia rural households.