Women’s better returns on education and human capital have spurred global economic growth. However, over time, both generally in Ethiopia and specifically in the Horro Guduruu Wallaga, women’s involvement in the labor market declined. Determining and analyzing the determinants that influence women’s decisions to absorb in non-agricultural activities was the objective of this study. A multistage sample procedure was used to encounter data from 383 chosen women. To examine the factors that influence a woman’s decision to engage in non-farm activities, a combination of descriptive and logistic regression approaches were used. According to descriptive statistics, 201 (52.48%) of the sample’s women were non-participants in any non-farm activity, whereas 182 (47.52%) of them were participants in at least one non-farm activity. However, the logit regression results showed that education, active labor force, training, and credit were positively and significantly related to her decision to enter non-farm activity. A woman’s distance to the market, children under the age of five, dependence ratio, and her ownership of livestock had a negative influence on her decision to engage in non-farm activities. According to the findings of this study, it is recommended that women’s educational development receive special attention, that family planning and parental benefits be adopted, that non-farm training be made available and properly followed up, that local markets be developed, that credit be given only for productive activities, that awareness of non-farm activities other than livestock husbandry (mixed farming) be raised, and that only women who qualify for low-interest credit be provided.
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