"Rural development, which includes progress both in farm and non-farm activities, seems to be the only hope to bring better days in Ethiopia. Non-farm activities provide not only alternative sources of income and employment for the rural poor but also stimulate agricultural production. Knowledge of the nature, determinants and effects of the non-farm activities provide clues about the character of socio-economic changes which might be induced by the adoption of employment-oriented strategy to promote the rural non-farm economy. Thus this study, by identifying the determinants and impacts of non-farm activities, hopes to provide necessary analytical insights for targeting the rural non-farm sector in Ethiopia."