The Ethiopian Farmer as an Entrepreneur

Smallholder farmers in policy language are often discussed as subsistence producers rather than economic actors with agency, innovation capacity, and entrepreneurial potential.
Agriculture remains foundational to Ethiopia’s economy and rural livelihoods. Yet “smallholder farmers” in policy language are often discussed as subsistence producers rather than economic actors with agency, innovation capacity, and entrepreneurial potential. Reframing smallholder farmers as entrepreneurs is not only accurate, it has profound implications for policy, investment, and inclusive growth.
In Ethiopia, the overwhelming majority of agricultural land and production is in the hands of smallholder farmers. These farms cultivate approximately 95 % of Ethiopia’s cropland and generate roughly 90 % of the nation’s agricultural output.