Factors Influencing the Engagement of Rural Youths in Off-Farm Income Generating Activities in Developing Countries: Evidence from Ethiopia, Wolaita Zone

Ethiopia is one of the poorest countries in the world with high rate of unemployment of youths. This rate is higher in rural than urban areas. Income generating activities play a vital role to improve the livelihood of rural people in developing countries. Many rural youths are faced with difficulty of maintaining livelihoods and consequently, poverty remains pervasive among them. The paper examined the engagement of rural youths in off-farm or non-agricultural income generating activities as well as factors influencing their involvement in Soddo and Areka towns in wolaita zone, Ethiopia. The purposes of this research are to explicitly enquiry and consider aspects that are influencing the engagement of rural youths in off-farm income generating activities in Sodo and Areka towns in wolaita zone. The study was utilized causal research design to achieve the research objectives. The target population under study is all youth groups in the ten off-farm income generating activities in both Sodo and Areka towns. The study was conducted from July 2018 to August 2019. In this study, primary and secondary data types and sources were used. The instruments to collect primary data were questionnaires. Sample size was 306 which determined by using Yamane (1967) formula and individual informants were selected via stratified random sampling technique. The data collected was analyzed quantitatively and qualitatively by the aid of SPSS. V.16. The finding of the study showed that the variables (entrepreneurial, technology, institutional, cultural, financial, socio-economical, psychological and infrastructural factors affecting the engagement of rural youths off-farm income generating activities both in Sodo and Areka towns in Wolaita zone, Ethiopia which were explained the variance of 73.7% and 26.3% of the variance was explained by other factors which are not the part of this study variables. Hence, stakeholders who focus on the engagement, promotion, encouragement and expansion of off-farm income diversification are expected to enhance entrepreneurial and psychological motivation to the youths.