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Factors Leading to Success in Diversified Occupation: A Livelihood Analysis in India

Abstract Purpose: Livelihood diversification is a sound alternative for higher economic growth and its success or failure is conditioned by the interplay of a multitude of factors. The study of the profile of the farmers in which they operate is important to highlight the factors leading to success in diversified livelihoods. Design/Methodology/Approach: A total of 160 households of farmers were selected randomly and were interviewed to collect primary data for the study. To measure the success of diversified occupation a success–failure scale was developed following the steps used by Singh et al., ‘t’ statistics was used to compare the two groups. Discriminant function analysis was used to identify the factors determining success and failure in diversified occupation. Findings: The study revealed that 53% of the diversifiers were successful in their diversified activities. Around 62.50% diversifiers under the high success category were adopted non-farming nature of diversification along with farm diversification. Number of livestock holding, resource mobilisation potentiality, contact with extension personnel, distance from market, share of non-farm income, credit-seeking behaviour and dependency ratio were major characters discriminating successful diversifiers from unsuccessful diversifiers. Practical Implications: The paper would be useful for the researchers and policy-makers to assess and compare the livelihood security of different rural communities in the country. Originality/Value: The study was originally conducted by the authors. Nothing similar has been previously published or is currently under consideration for publication by another journal.