Abstract Women entrepreneurs are essential to the informal sector in developing economies. They generate income, support households, and contribute to local economic growth. In India, many women run small businesses like street vending, retail trading, tailoring, and home-based operations. These businesses mostly operate in the informal economy and face challenges such as limited financial resources, low formal education, and lack of access to support systems. The introduction of the Goods and Services Tax (GST) in 2017 was a significant change in India’s indirect taxation system. GST aimed to simplify the tax structure by replacing various indirect taxes with a single system. It sought to improve transparency and promote business formalization. However, implementing GST has posed challenges for small entrepreneurs, particularly women in the informal sector, due to limited knowledge of tax procedures and difficulties with digital compliance. This study looks at the awareness, challenges, and compliance experiences of women entrepreneurs in Bengaluru’s informal markets. A survey of 100 women entrepreneurs was conducted in major market areas, including Chickpet, Russell Market, K.R. Market, Majestic, Shivajinagar, Jayanagar, Malleswaram, Hebbal, K.R. Puram, and Shantinagar. The study analyses their socio-economic profile, business characteristics, GST awareness, and compliance issues. The findings show that most respondents run micro-scale businesses with low income and limited education. Although many know about GST, they lack detailed procedural knowledge. There is a strong reliance on family members, accountants, friends, and intermediaries for compliance. Limited digital skills and low participation in training programs hinder their ability to comply independently. The study underscores the need for targeted training, improved digital skills, and simpler compliance systems to support women entrepreneurs. Keywords: Women Entrepreneurship, Informal Sector, GST Awareness, Digital Literacy, Urban Informal Markets 1. Introduction Entrepreneurship drives economic growth, creates jobs, fosters innovation, and contributes to local and national development. In developing countries like India, entrepreneurship is not limited to large formal businesses. It extends to a significant informal sector where small-scale enterprises operate with minimal oversight. Women make up a large part of this informal economy, engaging in activities like street vending, tailoring, retail trading, and home-based businesses. These ventures provide crucial income for families and allow women to juggle domestic responsibilities. However, they often encounter multiple challenges, such as limited financial resources, low formal education, and lack of support systems. Bengaluru, one of India’s leading cities, features vibrant informal markets like Chickpet, Russell Market, K.R. Market, Majestic, Shivajinagar, and Jayanagar. These markets are bustling with micro-entrepreneurial activity, where women manage small retail operations, street vending, tailoring, and home production. While these enterprises are vital to the city’s economy and household livelihoods, they mainly operate outside formal regulations and struggle to adapt to policy changes like the Goods and Services Tax (GST). GST, introduced in 2017, aimed to unify various taxes, simplify compliance, increase transparency, and encourage business formalization. Effective compliance requires digital registration, online return filing, invoicing, and record maintenance. Many women entrepreneurs find these processes challenging due to limited awareness and low digital skills. Consequently, they often turn to family members, friends, accountants, or intermediaries for help with GST compliance. Though the role of women-led informal enterprises and the impact of GST are growing in importance, there’s a lack of research focusing specifically on women entrepreneurs in urban informal markets. Most existing studies look at small businesses in general or focus on digital inclusion without considering the intersection of gender, informal entrepreneurship, and taxation. Understanding their socio-economic profile, business characteristics, GST awareness, compliance challenges, and support needs is crucial for creating targeted policies and interventions that promote formalization and economic inclusion. Thus, this study focuses on women entrepreneurs in Bengaluru’s informal markets, aiming to provide insights for policymakers, business associations, and training programs to strengthen their capacity, improve GST compliance, and integrate informal businesses into the formal economy. 2. Review of Literature The informal sector is vital for economic development in developing countries, providing livelihoods for individuals with limited access to formal job opportunities. It includes small-scale, mostly unregulated businesses that significantly contribute to local and urban economies. Women make up a considerable part of this informal workforce, participating in micro-enterprises like street vending, tailoring, retail trading, handicrafts, and home-based jobs. These activities generate income and enable women to balance household and caregiving tasks. Despite their economic roles, women entrepreneurs face structural challenges such as limited formal education, low financial literacy, restricted access to credit, and inadequate institutional support or training (Chen, 2012; Kabeer, 2015; Nayyar, Sharma & Mehta, 2018). These issues hinder their businesses' growth, efficiency, and formalization. Government data further illustrates the prevalence of informal employment among women in India. The Ministry of Statistics and Programme Implementation reports that nearly 85–90% of women workers are in the informal sector, indicating a high concentration in unregulated activities. At the state level, the Economic Survey of Karnataka (2020–21) states that about 86.9% of the workforce is in the informal sector, suggesting similar trends in urban areas like Bengaluru. These patterns highlight the structural barriers women entrepreneurs face, especially concerning access to formal systems and adapting to regulatory frameworks. The 2017 introduction of the Goods and Services Tax (GST) marked a significant change in India’s indirect taxation system. It aimed to simplify tax administration, unify various indirect taxes, improve transparency, and foster business formalization. While GST streamlined tax procedures at a macro level, small and micro-enterprises, especially those run by women in the informal sector, encounter significant compliance challenges. Many struggle with understanding GST rules, filing returns, maintaining accurate records, and navigating digital portals (Shree, 2023). Digital literacy has become essential for compliance, yet many women entrepreneurs lack the skills to use online platforms effectively, increasing their dependence on intermediaries, accountants, or family members. Although several studies have looked at GST's impact on small enterprises, research specifically on women entrepreneurs in urban informal markets is limited. These women face unique challenges, including gender-specific constraints, informal business limitations, and the complexities of digital tax compliance. Understanding their socio-economic profiles, business characteristics, GST awareness, and the hurdles they face in meeting regulatory requirements is crucial for designing effective interventions. Such insights can guide policies, digital literacy programs, and support mechanisms aimed at empowering women entrepreneurs, improving compliance, and encouraging greater participation in the formal economy (Sowmya & Pai, 2025). 3. Need for the Study Even though women entrepreneurs are crucial to Bengaluru’s informal economy, there is limited research on their GST awareness, compliance challenges, and support needs. Existing studies rarely discuss the intersection of gender, informal entrepreneurship, and taxation. This study fills that gap by examining their socio-economic profile, GST awareness, compliance barriers, and support systems, offering insights to inform policies and training programs that empower women entrepreneurs. 4. Research Objectives 1. To study the socio-economic background of women entrepreneurs and their awareness of GST. 2. To identify the challenges women entrepreneurs face in understanding and complying with GST, including digital issues. 3. To examine the available support systems and suggest improvements for GST awareness and compliance among women entrepreneurs. 5. Research Methodology This study uses a descriptive research design to explore the awareness, challenges, and compliance behaviour of women entrepreneurs in the informal sector under GST. The research took place in key informal market areas of Bengaluru, including Chickpet, Russell Market, K.R. Market, Majestic, Shivajinagar, and Jayanagar, where many women run small businesses. A sample of 100 women entrepreneurs was chosen using purposive sampling to include those actively involved in informal businesses. Primary data was gathered through a structured questionnaire that covered socio-economic details, business profiles, GST awareness, compliance practices, and challenges. Secondary data was collected from journals, government reports, and related studies. The data was analysed using simple methods like percentages and tables to identify patterns and draw conclusions. 6. Data Presentation and Interpretation This section presents the findings from a survey of 100 women entrepreneurs in Bengaluru’s informal markets, focusing on their demographic profiles, business activities, GST awareness, compliance practices, and challenges. The data is illustrated in charts, followed by discussion for interpretation. Educational Qualification Most respondents have limited formal
Dr Maria A (Mon,) studied this question.