The promotion of entrepreneurial activities is considered a mean to boost employment and income opportunities in less favoured areas. Farmers, as experienced owners and managers of productive resources, represent a great entrepreneurial potential for developing non-agricultural businesses. The aim of this study is to provide empirical evidence regarding farmers' entrepreneurial characteristics, factors affecting their decisions to participate in non-agricultural entrepreneurial activities, and a characterization of the process of formation and operation of farm-based value-added activities in Canada.;In respect to characteristics of farm-based value-added activities: the main objectives for starting VAD are to complement household income and to assure survival of family businesses; main problems in starting VAD are lack of marketing skills and managerial abilities and meeting regulations; and the main barriers for not participation in VAD are lack of time, financial constraints and size of operation. VAD are mostly family businesses involved in direct selling through farmers' markets, pick-your-own and farm shops with a local customer base. The main contribution of VAD activities to farm household are achievement of initial objectives and increase in household income.;The results suggest that farmers have the entrepreneurial potential for participating in strategies of rural development through business diversification. Better institutional coordination, revision of regulations and appropriate incentives can improve their participation. Policymakers and rural developers can benefit from this information in developing policies involving farmers in creating or expanding entrepreneurial activities in rural areas.;Keywords. entrepreneurship, value added activities, farm diversification, non-farm business.;Canadian farmers exhibit internal locus of control (LOC) and moderate high levels of entrepreneurial self-efficacy (ESE) and entrepreneurial alertness (EA). Farmers performing non-agricultural entrepreneurial activities show higher levels of ESE and EA than farmers who are not doing these types of activities. Furthermore, farmers' participation in value-added activities is influenced positively by innovation, university education, participation in organizations and production of fruit and vegetables. Farming experience affects negatively. Participation in non-farm business is positively influenced by managerial abilities, business experience, and participation in off-farm employment. Negative factors are university education and fruit and vegetable production.
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