This 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.
The 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).
The 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.
A 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.
This 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.
