Broader attainment of economic activity cycle by SHG women and their economic empowerment

PurposeThis study aims to assess the level of participation in the Economic Activity Cycle (EAC), identify key components influencing empowerment and compare the performance of Self-help Group (SHG) members in Bihar engaged in production and distribution/selling (P&DS) activities with those who are not.Design/methodology/approachThe research adopted the research onion model to frame its methodology, using a positivist philosophy, a deductive approach and a quantitative methodological choice. Primary data were collected through a cross-sectional survey of 384 respondents. To support the analysis and enrich contextual understanding, secondary data were reviewed from peer-reviewed articles and academic books. Data were analyzed using mean, binary logistic regression, chi-square tests and the Mann–Whitney U test, with SPSS software (version 22).FindingsThe findings indicate that SHG members engaged in P&DS activities demonstrated broader participation in the EAC. Need assessment, income and savings emerged as key factors influencing the level of empowerment. In addition, members involved in P&DS activities outperformed their counterparts in achieving higher levels of empowerment.Practical implicationsA clustering approach promotes broader participation of SHG women across all stages of the EAC, supporting sustainable business development and long-term economic empowerment in Bihar, India. This approach enables the scaling up of their ventures and enhances prospects for sustained growth.Originality/valueThis study is the first to provide a holistic examination of the components of economic activities undertaken by SHG members and their association with the level of empowerment. In addition, it introduces a novel classification by dividing SHG members into two groups: those engaged in P&DS activities and those who are not.