The role of small town in household livelihood diversification in Ethiopia rural areas

Abstract

There is a high expectation that urban-rural linkage in general and the function of small towns, in particular, has a great role in livelihood diversification and poverty reduction in rural areas than sectoral development. However, the previous empirical studies give little attention to the function of small towns and the livelihood diversification of rural communities. We analyze the function of a small town and participating in non-farm economic activities from a rural farm household survey of 371 farmer household heads in Ethiopia. The data was analyzed using a logistic regression model and statistical description. The study found that rural households who have road access have likely participated in none-farm activities and it has positive and significant effects. Education and FHH has also a significant relationship with the function of a small town. Distance from the small town has a significant and positive impact on the non-farm economic activities of rural communities. Overall, benefits from the function of small towns such as the provision of road access, agricultural extension, financial credit services, administrative services, educational and health services are some of the provisions of a small town. Therefore, a comprehensive integrated urban-rural linkage strategy could empower rural farm smallholders to diversify their livelihoods through strengthening small town functions is mandatory. The role of small towns needs to be integrated into rural communities. Participate in livelihood diversification strategies and achieve sustainable development goals by 2030 at large.