What is meant by livelihood diversification?

Livelihood diversification is defined as the process by which rural families construct a diverse portfolio of activities and social support capabilities in order to survive and to improve their standards of living.

What are the determinants of livelihood diversification?

six main determinants of livelihood diversification. These are seasonality, risk, labour markets, credit markets, asset strategies, and coping behaviour. All such determinants of livelihood diversification are mediated through social relations and institutions.

What is the concept of livelihood?

‘A livelihood comprises the capabilities, assets (stores, resources, claims and access) and activities required for a means of living’.

What are examples of livelihood activities?

Livelihood is defined as a set of activities essential to everyday life that are conducted over one’s life span. Such activities could include securing water, food, fodder, medicine, shelter, clothing.

What is rural diversification?

In its simplest terms rural diversification means the establishment of new enterprises in rural locations. This can mean existing businesses entering into new areas of activity or the creation of entirely new enterprises.

Which of the following are regarded as negative effects of rural livelihoods diversification?

The negative effects of rural livelihood diversification are income distribution and adverse gender effects.

What are the factors of livelihood?

Different socioeconomic characteristics of the household significantly influence the level of livelihood diversification. Age of household head, farm input use, extension contact, market access, credit access and owned cattle size are the main factors.

What are the components of livelihood?

A livelihood comprises the capabilities, assets (stores, resources, claims and access) and activities required for a means of living: a livelihood is sustainable which can cope with and recover from stress and shocks, maintain or enhance its capabilities and assets, and provide sustainable livelihood opportunities for …

What are types of livelihood?

The framework divides the livelihood capital of rural households into five categories—natural capital, human capital, physical capital, financial capital, and social capital—which form the livelihood capital pentagon.

What are the development strategies for livelihood diversification?

Development strategies for livelihood diversification therefore tend to focus on eliciting increased access to and use of modern inputs and technologies, improving markets and agribusiness opportunities, and developing skills and support for individuals and groups to engage in non-agricultural self-employment or wage employment.

Why do rural populations diversify their livelihoods?

Risk and seasonality comprise two classic reasons for livelihood diversification. In order to minimize risks and secure a constant inflow of income despite different harvesting seasons, rural populations has pursued various income activities with different risk profiles.

What determines livelihood diversification options by pastoral households?

The result of logistic regression analysis is presented to identify determinants of livelihood diversification options by pastoral households. The maximum likelihood method of estimation was employed to estimate the parameter estimates of the multinomial logit model, and statistically significant variables were identified.

How do households in Sub-Saharan Africa diversify their income and livelihood strategies?

It is well-recognized that households in sub-Saharan Africa (SSA) seek to diversify their income and livelihood strategies both to manage or reduce their risks and to expand or take advantage of synergies across different income generation activities (Barrett, Reardon et al. 2001).