Diversification strategy is observed when new products are introduced in a completely new market by the company. Port Harcourt Journal of Social Sciences, 2018. Advantages Of Diversification. Diversification into a number of industries or product line can help create a balance for the entity during these ups and downs. Farmers were shifting their occupation from one to another because of several reasons. (Eldram,2003) For this reason, coastal communities are changing their livelihood activities at different time periods, which make their income uncertain. Diversification is more of a reactive strategy than a proactive one, on the other hand 15 observes that beliefs, risk, discontinuity, complementarities and flexibility form the four core economic reasons that may propel an individual or household to diversify its livelihood set. FREE online courses on Corporate Strategies - Diversification Strategies - Reasons for Diversification . Rural livelihood diversification is then defined as ‘the process by which households construct a diverse portfolio of activities and social support capabilities for survival and in order to improve their standard of living’ (see also Ellis, 1998; Ellis, forthcoming). If they are successful, the value of the company increases. The differences between livelihood diversification and income diversification is that; livelihood diversification includes non-monetary activities as well as income earning activities, hence it is a broader concept than income diversification (Harris-Coble, 2017). There will always be unpleasant surprises within a single investment. Livelihood diversification is widespread and found in all locations as well as across farm sizes and wealth groups, and is not only a distinguishing feature of rural survival strategies in contemporary poor countries, but is also present in urban areas of developing and rural areas of developed countries (Ellis, 2000). This focuses on assessing the contribution and impact of predominant livelihood diversification strategies in study area. The study Rural people partake in a number of strategies, including agricultural intensification, and livelihood diversification, to attain their livelihoods goal. The concept of diversification 2.1 Interpretation of the concept of diversification Definition and associated dimensions Diversification is the process by which a household increases the diversity (i.e. In A. J. van der Zijpp, & J. more livelihood diversification and non-farm employment is typically good for individuals and overall economic growth in SSA. The diversity of rural livelihoods in low income developing countries is receiving increased attention in discussions about rural poverty reduction. Wageningen Academic Publishers. Agricultural diversification is one of the essential components of economic growth. This paper explores just one facet of livelihood diversity, namely the reasons for households to adopt multiple livelihood strategies. 2 Livelihood diversification is thus defined as the processes by which households construct an increasingly diverse ... variety of other reasons for settling in peri-urban such as Widowhood, access to education and access to agricultural labour work. Livelihood diversification with certification-supported farming: The case of land reform beneficiaries in the Philippines Rie Makita Rikkyo University, 3-34-1, Nishi-ikebukuro, Toshima-ku, Tokyo,171-8501, Japan. Assessing farmers' motives for livelihood diversification in the Mekong delta: household life cycle, virtual farm size, and index of integration. Livelihood Diversification and Income Levels Amongst Rural Households in Oil Impacted Communities of the Niger Delta. Livelihood diversification interests and barriers to uptake for target populations: What are the economic and vocational visions and aspirations of population sub-groups of interest, and their perceived challenges and barriers to diversifying away from traditional climate-dependent livelihoods? 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. However, it is complex; its association with positive or negative changes is not always clear. Livelihood diversification and transition in rural Africa have been extensively studied in recent times. Income diversification through livestock trading, petty trade, and wage employment are diversification strategies widely reported among pastoralists in the Horn of Africa (Fratkin, 2013). Kinikanwo Anele. The strategy is loaded with hurdles because it requires a lot of investment and a lot of man power as well as focus of the top management. It is therefore not surprising that many development strategies and programs seek to design development interventions to better promote livelihood diversification. Traditionally, it has been applied as a strategy to encourage positive economic growth and development. The distinction is made between diversification of necessity and diversification by choice. A. J. Verreth (Eds. 3. JACK J A C K S O N T.C.B. Existing trends of livelihood diversification in Ethiopia indicate that traditional livestock-based livelihood Economic diversification is the process of shifting an economy away from a single income source toward multiple sources from a growing range of sectors and markets. The following are the advantages of diversification: As the economy changes, the spending patterns of the people change. livelihood diversification strategies. The distinction is made between diversification of necessity and diversification by choice. But still, in the long run, diversification strategy is one of the best growth strategy in the long run. Also, [22] found out in a study in Southwest Nigeria that livelihood diversification had an insignificant effect on household food poverty. This study examines the role of livelihood diversification in promoting household food security with particular reference to Hurungwe District in Zimbabwe. Kinikanwo Anele. Many of these studies have focused on drivers and trends in income diversification among rural households, including a focus on constraints and incentives in rural Africa. 2012). The distinction is made between diversification of necessity and diversification by choice. To determine the reasons why some households do not pursue superior livelihoods strategies, that is, factors that affect livelihood diversification patterns and possible barriers to better living, logistic regression has been implemented. Livelihood diversification is the process by which households construct a diverse portfolio of activities and social support capabilities for survival and in order to improve their standard of living. Livelihood diversification and transition in rural Africa have been extensively studied in recent times (Barrett et al. Some current coastal livelihood activities are no longer economically, environmentally and socially viable and need to be replaced with alternatives (Ireland et al., 2004). Livelihood literature (Hussein and Nelson 1999; Ellis 2000) suggests that though exogenous trends and shocks play an important role in pushing rural people towards a diversified livelihood strategy, diversification choices are also firmly rooted in the micro-economic logic of farming households. . The effect of livelihood diversification revealed that livelihood diversification had positive and significant effect on food security (65.6%) and income generation (66.8%) in the study area. This paper explores just one facet of livelihood diversity, namely the reasons for households to adopt multiple livelihood strategies. The aims of the review were to: (1) Identify livelihood diversification strategies and (2) Review determinant and challenges of rural livelihood diversification strategies. purported impact of livelihood diversification on household food security. PDF. had various reasons for diversifying into other activities vis-a-vis agricultural income, limited skills, large family size, availability of opportunities, ... Livelihood diversification has been defined as the process by which rural families construct a diverse The diversity of rural livelihoods in low income developing countries is receiving increased attention in discussions about rural poverty reduction. JACK J A C K S O N T.C.B. The main reason for livelihood diversification could be positive or negative factors like improving existing . In these Counties, 300 and 362 households, Hence, this 24 Tamrat Gebiso Challa et al. Livelihood diversification has long been recognized as a risk management strategy and source of resilience. number) of its income generating activities (Ellis 2000a). The main reason for livelihood diversification could be positive or negative factors like improving existing livelihoods, as copping strategy for changing climatic conditions landlessness due to population pressure in the rural areas. 2001a, b; Ellis 1998, 2000, 2005; Carswell 2002).Many of these studies have focused on drivers and trends in income diversification among rural households, including a focus on constraints and incentives in rural Africa (Barrett et al. According to [13], coping strategies comprises tactics for maintaining consumption savings, using up food stocks, gifts from relatives, ), Fishponds in farming systems (pp. Livelihood strategies are the combination of activities that people choose to undertake in order to achieve their livelihood goals. Diversification of activities may be less important than diversification of risk. The determinants and effects of diversification in the areas of poverty, income distribution, farm output and gender are examined. The major constraints to diversification in the study area were poor infrastructure, unavailability of … Download Free PDF. Companies may implement diversification strategies to enhance or increase the strategic competitiveness of the overall organization. Income diversification has been hailed by some policy-makers as an important ingredient for building pastoral resilience. Livelihood diversification enables rural household farmers to device other means to promote their level of income and minimize susceptibility to different livelihood shocks. The result generated through review may be important for development practitioners, researchers and … This study applied the sustainable livelihood approach to establish the determinants of diversification among pastoral households of Turkana and Mandera Counties. Understanding how livelihood diversification contributes to long-term non-migration decisions of people at risks is innovative and timely in the context of future climate change adaptation planning. This is motivated by the nature of the dependent variables, which is categorical (Kremelberg 2011). This paper explores just one facet of livelihood diversity, namely the reasons for households to adopt multiple livelihood strategies. 2001). Context is important in shaping the risk environment and range of livelihood opportunities open to people. Livelihood diversification in coastal and inland fishing communities 5 2. 2005; Smith et al. It is the stage where traditional agriculture is transformed into a dynamic and commercial sector by shifting the traditional agricultural product mix to high standard products, that has a … 261-270). The role of livelihood diversity, namely the reasons for households to adopt multiple livelihood strategies contribution impact! 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