Enhancing collective action among rural households is crucial for promoting rural revitalization and improving livelihoods in underdeveloped areas. Taking Shanxi Province, China, as a case study, this paper employed a household survey method to collect 312 questionnaires from rural households. Using the mean value analysis of the measured items in the questionnaire. The participation status of farmers in less developed areas in collective actions, such as farmers’ professional cooperatives, village cadre elections, and cooperative construction of small farmland water conservancy, was examined in four aspects: willingness to participate, frequency of participation, time of participation, and sense of the value of participation. From the perspectives of livelihood risks, livelihood assets, livelihood patterns, and livelihood income, it analyzed the livelihood conditions of rural households in underdeveloped regions. Building upon the empowerment of collective action in rural livelihoods, the study further applied a multiple linear regression model to assess the impact of collective action on livelihoods. The findings indicated (1) a strong willingness and perceived value among rural households to participate in collective action, albeit with a low frequency and limited time commitment; (2) relatively low livelihood levels, characterized by limited livelihood assets, predominant subsistence farming, small-scale non-specialized enterprises, and low livelihood income, yet with notable resilience against livelihood risks; (3) that collective action significantly enhances rural household livelihoods positively. Based on these findings, policy recommendations are proposed, emphasizing the enhancement of collective organization, provision of incentive mechanisms, and improvement of farmers’ skills and qualities to foster greater participation in collective action.