A Ffostrasol carpenter has won permission to build a workshop and a nearby six bedroom home on land at Can-y-Gwynt.
Ceredigion planners officers recommended that the two schemes should be refused because it was building in open countryside.
But councillors at this week's development control committee supported Gary Jones' bid and praised it as an example of rural enterprise.
Mr Jones, who has an established carpentry business, wants to build the house to keep an eye on a flock of 250 sheep plus be near the workshop.
"I think we should be supporting young families in rural enterprise. It is obvious the business will be more successful if he lives on site. He comes from a farming family and it runs in the blood. The business is important to the local economy," said Cllr Peter Davies.
A Reading-based agricultural consultancy used by the council assessed the scheme and recommended refusal.
Cllr Dafydd Edwards said: "If we don't back businesses run by people who are self employed what's going to be left in this county? Just people who come here and live on the dole. We have to make sure that people who are willing to work are given the opportunity."
However one councillor voted against the scheme. Cllr John Lumley said: "This is right out in the countryside. We should follow the officers' recommendation."
Councillors gave the go-ahead to the workshop and the new house.