Introduction
This section deals with literatures under the following themes: Definition of rural non-farm activities, determinants of rural non-farm activities, challenges of rural non-farm activities and the contribution of rural non-farm activities to poverty reduction.
Rural non-farm activities
Junior R. Davis (2005), defines rural non-farm activities as comprising all those activities associated with wage work or self employment in income generating activities(including income in kind that are not agriculture but which generate income) including remittances etc. in rural areas. Rural non-farm activities also refers to those activities that are not primarily agriculture or forestry or fisheries but includes activities such as trade or processing of agricultural products (even if in the case of micro processing activities which take place on the farm)(Gordon Ann and Craig Catherine, 2005).
Rural non-farm activities is also defined as all economic activities conducted in rural areas except agriculture, livestock rearing, fishing and hunting (Lanjouw and Lanjouw, 1995). Rural non-farm activities include agro processing, small businesses in rural areas, migration or switching from farming to commodity trading or household assets selling in response to negative circumstances (Davis and Pearce, 2001).
In the context of this research, rural non-farm activities is defined as all economic activities in rural areas with the exception of agriculture( the growing of crops and the rearing of animals for sale or for consumption) which provides a source of livelihood for the rural people. Some of these activities include petty trading, food processing, craftworks, carpentry works and all other activities that are not agriculture.
Determinants of rural non-farm activities
The establishments of rural non-farm activities require very low levels of capital investment and are some are also based on locally available raw materials (G. S. Mehta, 2002). Monica