Abstract:
Rural households face an increasing need of looking for alternative income sources to supplement
their livelihood activities. However, their livelihood strategy choices were determined by complex
and yet empirically untested determinants in Boneya Boshe District. Therefore, the objective of
this study was to assess the determinants of rural households’ livelihood strategy choices in the
study area. The study is based on primary data collected from 147 sample selected at random
using questionnaire. Additional information was also obtained from focus group discussion, key
informant interview and personal observation. The data has been analyzed by descriptive
statistics, inferential statistics (x2
and t-test) and economic model (multinomial model) using SPSS
software. Qualitative data were used to substantiate the responses of questionnaire. The finding
of the survey result indicates that much of the rural households (39%) in the study area practice
on farm livelihood strategy followed by 24.48 percent was from nonfarm activities that combined
on-farm activities with nonfarm activities. Multinomial logit model applied to investigate the
determinant influencing the households’ choice of livelihood strategies. The econometric analysis
demonstrated that out of the total sixteen variables included in the model five variables in on
farming plus off-farm activities, seven variables in on farming plus non-farm and seven variables
in combination of on farm plus off-farm plus non-farm activities were solely or simultaneously
were influenced rural household choice of livelihood strategies at different significant level. The
results of this study recommend that, livelihood strategy choices should focused on sustainable
livelihood development and to withstand shocking. To do so, higher concern would be given to the
agricultural diversification, intensification and non/off farm strategies could be strengthened to
raise positively farmers’ participation in various livelihood strategy choices rather than depend
solely on one livelihood strategy choice.
