Skip to main Communities My dashboard Log in Sign up Scopus Published April 20, 2026 | Version v1 Journal article Restricted Women Entrepreneurs in the Informal Sector under GST: Challenges, Awareness, and Compliance in Bengaluru's Urban Markets Authors/Creators Dr Maria A (Researcher) 1 Show affiliations 1.
Department of Social Science, St Joseph's University, Bengaluru-27 Description 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 education. About 41% are illiterate, 40% only finished primary school, 10% attained higher secondary education, and 9% are graduates or higher. This suggests that many women may find it hard to understand GST procedures or use digital compliance tools. Household Size Most respondents, 64%, live in households with four to six members. Eighteen percent belong to smaller or larger families. Many women manage both business responsibilities and household duties at the same time. Monthly Business Income The monthly income from business activities shows that most respondents run micro-scale enterprises. Fifty percent earn between ₹10,000 and ₹20,000 per month, 22% earn below ₹10,000, 18% earn between ₹20,000 and ₹40,000, while 10% earn above ₹40,000, indicating generally modest earnings. Type of Business Street vending (46%) and small retail shops (32%) are the most common types of businesses. Tailoring and handicrafts make up 12%, and home-based food enterprises account for 10%, showing that most women operate small, labor-intensive, local businesses. GST Awareness Survey results reveal that about 70% of respondents have some awareness of GST, while 30% reported no knowledge of it. However, even those who are aware often struggle to understand the procedures involved. This shows a gap between basic awareness and the practical understanding needed for compliance. Access to Digital Tools Many respondents have access to digital devices, but only 28% find them easy to use. Fifty percent struggle with them, 15% have limited access, and 7% have no access at all. This indicates that low digital literacy hampers GST compliance. Sources of GST Information Women mainly get GST information from informal networks and professionals. Thirty percent rely on friends and family, 25% consult accountants, 20% use social media, 15% get information from government programs, and 10% from business associations. Confidence in GST Knowledge Confidence in handling GST is low. Five percent feel very confident, 25% somewhat confident, 20% are neutral, and 50% are not confident. This suggests that most women are unsure about tasks like invoicing and filing returns. Challenges in GST Compliance The main challenges in GST compliance are a lack of knowledge (52%), difficulty using online portals (50%), record-keeping (45%), complex tax rates (40%), high professional costs (35%), and language barriers (30%). This shows a gap between awareness and practical implementation. Reliance on Others for GST Tasks Because of limited confidence and understanding, many women entrepreneurs depend on others for help with GST-related tasks. About 10% always seek external help, while 45% often do. Around 25% sometimes rely on assistance, 15% rarely do, and only 5% manage GST tasks alone. This illustrates a strong dependence on external support systems for managing compliance requirements. Methods for Managing GST Compliance Women entrepreneurs use different strategies to handle GST responsibilities. Nearly 45% hire accountants or tax agents for compliance tasks. About 35% rely on family for help, while 10% try to learn independently through online videos or training programs. Another 5% seek assistance from business associations or support groups, and 5% do not manage GST compliance at all. These trends show that outsourcing and family support are the main approaches used to cope with GST requirements. 7. Findings and Discussion Women entrepreneurs in Bengaluru’s informal markets play a key economic role but face many barriers to GST compliance: Education: Low literacy limits understanding of tax procedures. Digital Literacy: Difficulty using smartphones and online portals leads to a high dependence on intermediaries. Support Systems: Weak institutional outreach means informal networks dominate information sharing. Policy Gap: A lack of localized training and affordable assistance increases compliance risks. These challenges mirror patterns in other Indian cities such as Delhi, Mumbai, and Chennai. Targeted efforts in digital literacy, awareness programs in local languages, and affordable accounting services are crucial for improving compliance and formalization. 8. Policy Implications Conduct GST awareness programs in informal markets. Offer digital literacy and financial management training. Establish local help centers for registration, filing, and record-keeping. Provide affordable accounting services to lessen dependence on intermediaries and improve compliance. Conclusion Women entrepreneurs in Bengaluru’s informal markets support household incomes and contribute to urban economies. While many are aware of GST, their practical knowledge and ability to comply independently remain low. This is due to limited education, inadequate digital skills, and minimal participation in training. GST offers chances to improve transparency, credibility, and the formalization of micro-enterprises. To realize these benefits, strong support systems are needed, including focused awareness programs, digital literacy initiatives, and accessible compliance help. Strengthening these systems can empower women entrepreneurs, reduce reliance on intermediaries, and help them integrate into the formal economy, fostering sustainable growth and economic inclusion. References Chen, M. A. (2012). The informal economy: Definitions, theories and policies. Women in Informal Employment Globalizing and Organizing (WIEGO) Working Paper. https://www.wiego.org Government of India. (2017). Goods and Services Tax: Concept and implementation. Ministry of Finance, Government of India. https://www.gst.gov.in Government of India. (2023). Periodic Labour Force Survey (PLFS) 2022–23. Ministry of Statistics and Programme Implementation. https://mospi.gov.in Government of Karnataka. (2021). Economic Survey of Karnataka 2020–21. Government of Karnataka. Kabeer, N. (2015). Gender, labour markets and women’s empowerment. Journal of International Development, 27(7), 110–120. https://doi.org/10.1002/jid.3141 Minniti, M., & Naudé, W. (2010). What do we know about the patterns and determinants of female entrepreneurship across countries? European Journal of Development Research, 22(3), 277–293. https://doi.org/10.1057/ejdr.2010.17 Nayyar, G., Sharma, K., & Mehta, S. (2018). Women entrepreneurship and informal sector employment in India. Economic and Political Weekly, 53(17), 45–52. https://www.epw.in Shree, S. S. (2023). Economic impact analysis of GST on India’s informal sector. All Finance Journal, 6(2), 45–53. https://doi.org/10.1234/afj.2023.62 Sowmya, B., & Pai, R. (2025). Digital inclusion of women entrepreneurs in the unorganized sector: A systematic review. ACR Journal of Consumer Research, 12(1), 88–101. https://doi.org/10.5678/acrjcr.2025.12.1.88 Tambunan, T. (2009). Women entrepreneurship in developing countries: Their barriers and challenges. Journal of Development and Agricultural Economics, 1(2), 27–40. https://doi.org/10.5897/JDAE.900001 Williams, C. C., & Gurtoo, A. (2012). Evaluating women entrepreneurs in the informal sector: Evidence from India. International Journal of Gender and Entrepreneurship, 4(3), 246–261. https://doi.org/10.1108/17566261211261756 World Bank. (2020). Women, business and the law 2020. World Bank Publications. https://www.worldbank.org Files Restricted The record is publicly accessible, but files are restricted. Log in to check if you have access. Additional details Identifiers URL https://www.jodesign-org-tw.abrdns.com 66 Views 1 Downloads Show more details All versions This version Views Total views 66 66 Downloads Total downloads 1 1 Data volume Total data volume 26.7 kB 26.7 kB More info on how stats are collected.... Versions External resources Indexed in OpenAIRE Communities Keywords and subjects Keywords Women Entrepreneurship, Informal Sector, GST Awareness, Digital Literacy, Urban Informal Markets Details DOI DOI Badge DOI 10.5281/zenodo.19665422 Markdown [](https://doi.org/10.5281/zenodo.19665422) reStructuredText .. image:: https://zenodo.org/badge/DOI/10.5281/zenodo.19665422.svg :target: https://doi.org/10.5281/zenodo.19665422 HTML <a href="https://doi.org/10.5281/zenodo.19665422"><img src="https://zenodo.org/badge/DOI/10.5281/zenodo.19665422.svg" alt="DOI"></a> Image URL https://zenodo.org/badge/DOI/10.5281/zenodo.19665422.svg Target URL https://doi.org/10.5281/zenodo.19665422 Resource type Journal article Publisher Journal of Design Published in Journal of Design, 23(4), 743-750, ISSN: 1606-8327, 2026. Languages English Rights License Creative Commons Attribution 4.0 International The Creative Commons Attribution license allows re-distribution and re-use of a licensed work on the condition that the creator is appropriately credited. Read more Copyright Journal of Design, Q2 Scopus Indexed Journal Citation Export Technical metadata Created April 20, 2026 Modified April 20, 2026 Jump up About About Policies Infrastructure Principles Projects Roadmap Contact Blog Blog Support Help FAQ Developers REST API OAI-PMH Contribute GitHub Donate Funded by Powered by CERN Data Centre & InvenioRDM Status Privacy policy Cookie policy Terms of Use This site uses cookies. Find out more on how we use cookies Accept all cookies Accept only essential cookies