ABSTRACT
There is no doubt, an ongoing shift in the economic mainstream of rural areas from farm to non-farm activities. This study explored the effects of non-farm activities on the economy of rural communities in Enugu State, Nigeria. The data for this study were acquired using questionnaire survey, administrative maps and literature. Data obtained were analyzed using descriptive statistics, mean variables and analyis of variance (ANOVA). The findings show that increase in household income and rural economic diversification were the most felt positive effects while the loss of plant and land degradation were found to be the most critical negative effects of non-farm activities on the rural communities in the study area. Generally, the influence of the negative effects on households were poorly ranked when compared with the benefits of non-farm activities in the study area. From the results of the ANOVA, it was concluded that there is a significant difference in the positive effect enjoyed by all the communities. However, the benefits were locational dependent. This study, therefore, suggests that the achievement of a sustainable rural economy in Enugu state should be centered on making deliberate policies to improve non-farm activities since it complements the household’s agricultural income.