Increasingly, market forces and trade liberalization are impacting significantly on rural livelihoods. Whilst these changes lead to new opportunities they can also increase the vulnerability of smallholder farmers and rural entrepreneurs to market vagaries.

Diversification into market-oriented income generating activities and participation in market economies is unavoidable if rural communities are to survive. The key issue is how to support engagement in the market in a way that promotes equitable and sustainable growth in the local rural environment. Supporting local economic strategies that promote rural enterprise development is therefore an important area of work as it:

– contributes to innovation, technology transfer, and adaptation to the market dominated environment
– regenerates the rural economy and creates jobs and income for rural people
– strengthens social cohesion by reducing labour migration to overpopulated urban centres
– promotes diverse engagement in different type of markets

As part of its strategy to promote learning on concepts and approaches for rural enterprise development and diversification, AGSF hosted the Livelihoods Diversification and Enterprise Development sub-programme (LDED) for five years which formed part of the DFID funded Livelihood Support Programme (2002-2007),

Through the FAO field network, this programme of work responded to rural communities’ demands for strengthening income generation and market linkages. Over five years the programme helped communities in Asia, Africa and Latin America design close to 50 mini-projects with grants averaging $15,000. These local learning activities took place under ongoing projects and programmes and provided training and capacity building for rural entrepreneur groups, farmers’ groups, rural NGOs and micro finance institutions, in participatory marketing skills, financial management, business planning skills and value chain development. For further information on the mini-projects supported by the LDED sub-programme please contact AGS-Registry@fao.org

Tool-kit for LDED activities

The LDED programme of work also supported the development of a CD for field practitioners who design or advise on livelihoods and enterprise development activities. The CD brings together a range of training manuals, guidelines and technical papers from FAO and selected organizations on the topic. To order a free copy e-mail AGS-Registry@fao.org

Brief - Rural micro-enterprise development: a way to reduce poverty

This brief provides an overview of the important role that enterprise development plays within the rural context. It explores the challenges that rural areas face and the constraints linked to micro and small enterprise development. The brief also provides definitions for different types of rural enterprises, and discusses the role of local service provision and the need for policy revision and a local enabling environment for small businesses. Advice on good practices for field training programmes is also provided. To view the brief please click here.

Small farmer export production in Africa

Studies were carried out on small farmer participation in export production in four countries: Uganda, Ethiopia, Kenya and Tanzania. The country case studies aim at providing information for improving producer capacity to respond to market changes, provide policy guidelines for institutional support to small farmer export production and support needs.

To access the documents please click on the links below:

Ethiopia

Kenya

Tanzania

Uganda

Synthesis report

FAO Diversification Booklets

The FAO Diversification Booklets aim to provide information on the diverse types of possible diversification and income generating activities possible at the farm and local community level. Each booklet focuses on a different type of farm or non-farm enterprise or technology that can be adopted by small farms or local enterprise groups. The target audience for the booklets is people and organizations that provide advisory, business and technical support services to small scale-farmers and local communities in low-and middle-income countries.

DB 1 Beekeeping and sustainable livelihoods	(E)	(F)	(S)
DB 2 Livelihoods grow in gardens	(E)	(F)	(S)
DB 3 Poultry for profit and pleasure	(E)	(F)	(S)
DB 4 High hopes for post-harvest	(E)	(F)	(S)
DB 5 Processed food for improved livelihoods	(E)	(F)	(S)