-

The following paper advocates an active rural employment policy in order to reduce rural poverty in the development countries and initiate a sustainable development process. The permanent large increases in the population call for a significant number of employment and income opportunities. As the agricultural sector’s capacity to provide employment is limited, the only alternative is the rural non-farm sector with its agri-business sector and its substantial capacity to offer employment. In order to achieve that goal, however, it will be necessary to establish a large number of very small, small and middle-sized enterprises. Highly motivated, innovative entrepreneurs are a prerequisite in addition to an adequate societal frame and supporting institutions. Innovative entrepreneurs invest their knowledge and capital and, hence, create active innovations with increased productivity in the rural sectors and generate employment and income opportunities.