Factors Affecting Choice of Livelihood Strategies in Peri-Urban Communities of Hossana Town, Southern Ethiopia

Cottage/small scale industry; Migration; Multivariate Probit; Other livelihood strategies; Service


  • Sara Shikur
    Department of Rural Development and Agricultural Extension, Ethiopia
  • Jema Haji School of Agricultural Economics and Agri-Business, Ethiopia
  • Tekle Leza Department of Rural Development and Agricultural Extension, Ethiopia
January 1, 2022


Background: In Ethiopia, the land allocated for urban expansion is taken from farming communities residing in the peripheries of towns and cities. Therefore, this decision strongly affects the livelihood of local communities living at peri-urban areas.
Objective: The purpose of this study was to identify the livelihood strategy choices in peri-urban communities of Hossana town, Hadiya Zone, Southern Ethiopia and factors affecting them.
Materials and Methods: A household survey research design was conducted using a semi-structured questionnaire by interviewing 369 households. Qualitative and quantitative data were collected from primary and secondary sources. In addition to household interview, focus group discussion, key informant interview, transect walk and personal observation were used as data collection tools. The study employed multivariate probit model to identify factors affecting choice of livelihood strategies in peri-urban local communities.
Results: Model results showed that dependency ratio, active labor force in the family, sex of household head, educational levels of household heads, annual total income, market distance, household asset ownership, mass media exposure, achievement motivation, information seeking behavior, distance to public transport, total cultivated land, livestock (other than ox) and extension contact significantly affected choice of livelihood strategies.
Conclusion: From the results we can conclude that agriculture, cottage/small scale industries, service, migration and other livelihood strategies are used as sources of income in peri-urban communities of Hossana town and are affected by different socio-economic, demographic, institutional, information and psychological factors. Therefore, it is necessary to give attention to those factors which positively affect agriculture, cottage/small scale industries and service and negatively affect migration and other livelihood strategies.