Abstract:
This study was intended to assess the practices, challenge and opportunities by urban households` livelihood diversification in Ambo town, Oromia Regional state, Ethiopia. The study was guided by the following objectives; to assess practices, Challenges and opportunities of urban household livelihood diversification in the study area. To do this cross-sectional type of study was conducted. Both qualitative and quantitative type of data was collected from both primary and secondary sources of data. Data’s has been used to collected from 154 sampled respondents using semi-structured household survey questionnaire, focus group discussion, key informant interview and personal observations. Multistage sampling technique was used to select Ambo town, the study kebeles and sample respondents. Both descriptive statistics and inferential statistics were used to summarize the data and to see whether there are significant mean differences practices, challenges and opportunities among urban household`s livelihood diversification respectively. The finding of the survey revealed that practices of diversified activity accounts only (5%) of sampled respondents combine on deferent activity with other relative work as an urban. Out of six kebeles of Ambo town the team of researcher selected two kebeles which can be representative for the whole. The main objective of this study was to assess the practice, opportunities and challenges of livelihood diversification activity in study are. The finding of the study has revealed that, the all types of livelihood strategies are practiced in the study area. Furthermore, the finding of the study reveals, opportunities for livelihood diversification, like community capital (human capital, social capital, physical capital financial capital and environmental capital) are not well utilized by urban community and it is more potential resource than actual resource in the process of diversifying urban community livelihood strategies. Along with the challenges of livelihood diversification strategies, lack of awareness creation and training services, fearing of risk taking, lack of finance, lack of opportunities in non-diversified sector, low level of mass media exposure and more others are the major Potential resource than actual resource in the process of diversifying urban community livelihood strategies. Along with the challenges of livelihood diversification strategies, lack of awareness creation and training services, lack of finance, lack of opportunities, low level of mass media exposure and more others are the major challenge factors of urban livelihoods diversification. Thus, concerned bodies, NGO and Government organization should give due attention and incorporate those negative and positive factors in challenges, practices and opportunities planning urban livelihoods diversification development strategies and polices