Assessing the role of non-agricultural household enterprises in boosting household income in Uganda

Abstract

This study aimed at assessing the role of non-agricultural household enterprises in boosting household income in Uganda and it was aided by three objectives that included, to identify the contribution of non-agricultural household enterprises on employment creation among household members, to assess the contribution of non-agricultural household enterprises on poverty reduction among household members and to determine the contribution of non-agricultural household enterprises on asset accumulation of the household creation among household members in Uganda. A total of 3176 households in Uganda were included in this study. The data was analyzed at univariate, Bivariate and multivariate levels of analysis. The results revealed that non-agricultural household enterprises contribute to employment creation among household members in Uganda, also, the study showed that non-agricultural household enterprises contribute to poverty alleviation and asset accumulation among household members in Uganda. Majority of the household heads (79.9%) reported that income from non-agricultural households is used for creation of employment, (84.2%) reported that income from non-agricultural household enterprise is used in poverty reduction from households and household with three assets reported that (83.7%) of the income if from non-agricultural enterprises followed by those with one asset (10.7%). The study therefore recommended that any policies targeted at promoting household income should go beyond just agricultural production measures; they should address both the food production measures and measures that help generate additional incomes for households by promoting non-farm activities. Policymakers should aim at promoting households’ participation in non-agricultural activities by increasing the access of households to physical, financial and human capital. Physical capital, which includes good roads and general infrastructural development, will help to reduce transportation costs therefore easing the barriers to non-agricultural participation and enhance non-agricultural income. The study also recommended that promising policy measures that can help boost non-agricultural activities also include increasing the access of rural households to financial capital (credit) and non-price factors such as education and infrastructure.