A blend of qualitative and quantitative methods was employed to gather data fromrnsample households.rnThe result of these findings points out that the younger household members engage inrnnon-fann income-earning opportunities and found out age is a factor to move into thernnon-fann sector more broadly. While there is no one that cannot read and write in thernparticipants, the number of illiterate in non-participants is high and it increase, as agroecologyrnis getting unfavorable. It is also observed that family size and structure affect thernability of a household to supply labor to the non-fann sector. Larger families supply morernlabor to the RNF sector, as sufficient family members remain in the home or on-the fannrnactivities to meet labor needs on agriculture. Regarding gender distribution, majority ofrnbusiness operators in the study wereda are male households that shows the dominance ofrnmale over female in rural non-fann activities.rnThe study also revealed the non-availability of government supportive structures such asrncredit and training programs to start and expand RNF activities. Lack of capital andrnmarket, business awareness and poor infrastructure were also among the constrainingrnfactors. RNF diversification, while generally limited, was dominated by chat andrnfattening ox and selling with equib and own saving as initial source of capital.rnThe study also showed business partlclpants in the study kebeles exceed the nonparticipantsrnby their annual income, food security, type of food stuff consumed, housingrncondition and source of light, hence the study conclude RNF activities are important.rnGenerally, the main conclusion to be drawn is the importance of helping the poor tornovercome the constraints and thus enable them to participate in RNF activities. Thisrnentails diagnosing the kinds of asset constraining the poor with respect to entrance intornthe more dynamic and remunerative RNF activities.rnThe policy implications forwarded are, promoting different RNF income generatingrnactivities, improving the asset bases of the poor and Social capital are important inrnaddition to education, health and financial services that facilitate access to RNF incomernsources.