PurposeOur paper empirically evaluates the impact of livelihood training programmes on entrepreneurial skills of the women Self-Help Group (SHG) members.Design/methodology/approachThe study is based on primary data collected from a sample of 416 SHG women of Sikkim, India, using a multi-stage cluster sampling. A multiple linear regression model is used to assess the impact of training participation on entrepreneurial skill. We correct for the potential self-selection bias associated with training participation using Propensity Score Matching (PSM) method and estimate the Average Treatment effect on the Treated (ATT) using 1:1 Nearest neighbour matching without replacement (caliper = 0.06) and full matching algorithm. The robustness of the result is validated using Rosenbaum bounds sensitivity analysis.FindingsThe findings suggest a significant and positive relation between livelihood training programme participation and entrepreneurial skills of the SHG members which relates to Human Capital Theory.Originality/valueOur paper contributes to the existing literature by empirically evaluating the impact of livelihood training on entrepreneurial skills of the SHG members. Further, our study not only corrects the problem of self-selection bias associated with training participation but also studies the influence of unobserved confounders on the estimated results ensuring generalisability of the findings. Additionally, the study is conducted across all four districts of Sikkim, a north-eastern state of India which has received less academic attention in the context of SHGs and its activities.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0100
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