Problems and Prospects of Rural Non-Farm Enterprise Development: The case of Bededo and Harra Kebeles in Tehuledere Woreda, South Wello Zone, ANRS

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Date

2008-06

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Addis Ababa University

Abstract

The Ethiopian rural situation reveals the growing interests in rural non farm income, increasing evidence r~flects that rural people livelihoods are derived from diverse sources and are not as overwhelmingly dependent on agriculture as previously assumed. This study allempted to identifY the major problems of rural non-farm enterprise operators that hindered them from starting and running their businesses. Moreover, it also assessed the prospects of these non-farm enterprises in the study area (Bededo and Harra kebeles). A standardized questionnaire was employed to gather data from the nonjc/rm business operators at household level. Moreover, in-depth interviews and focus group discussions were applied to make thejindings of the survey more reliable and consistent. In addition, the researcher examined policy documents of some government and non-government organizations (considered relevant to the subject of the study) to verifY whether they were incorporated the RNFE development issues or not. The study result revealed the non availability of supportive structures and processes including rural enterprise enabling policies, credit, tramport, infrastructures (mainly road, electricity). The study also identified a gap in training (business and technical), and reasonably developed market capable of providing both a steady supply of inputs, for consumption commodities and an outlet to enterprise outputs. The research findings also indicated the existence of positive prospects in the area of RNFEs. Some of the cited prospects are: the expansion and construction of rural roads being started by the government, the change in the approach of some NGOs in incorporating RNFE issues in their development strategy, and the establishment of FTC in each rural kebeles. These are as also mentioned as major contributing factors to the development of RNFEs. Prohlems and Prospects of Rural Non-farm Entelprise Development

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Keywords

Non-Farm Enterprise

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