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Purpose

This study aims to investigate how women’s active engagement in social enterprises contributes to their economic empowerment, psychological empowerment (PSE) and perceived social value creation (SVC) in northern India. It further examines the role of PSE in shaping the economic and social outcomes.

Design/methodology/approach

Using a quantitative cross-sectional design, data were collected from female actively engaged in social enterprises, cooperatives and livelihood-based NGOs. The study used partial least squares structural equation modeling to test the hypothesized relationships and assess both direct and indirect effects.

Findings

The results reveal that active engagement in social enterprises significantly enhances both economic and PSE. PSE further mediates the relationship between participation and both empowerment outcomes, confirming its central role as an enabler of PSE. Economic and PSE also positively influenced perceived SVC, underscoring the multidimensional nature of women’s empowerment.

Social implications

The findings emphasize the need for social enterprises to integrate participatory training, leadership roles and collective learning mechanisms to strengthen women’s agency and confidence. These results align with Sustainable Development Goals (SDG 5, SDG 8 and SDG 10), highlighting social enterprises as inclusive platforms for reducing inequality and fostering sustainable community development.

Originality/value

This study contributes to the limited empirical evidence from India by offering an integrated framework linking social enterprise participation with multidimensional empowerment outcomes. By combining empowerment theory and the SVC perspective, it advances both theoretical understanding and policy relevance in gender and social enterprise research.

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