REIMAGINING MARKET INCLUSION: THE ROLE OF INTERMEDIARIES IN BRIDGING THE HABITUS GAP

Sustainability challenges (Brundtland, 1987) often include significant social dimensions, particularly in integrating bottom-of-the-pyramid (BOP) or informal sellers into formal markets (Pels et al., 2022). This issue aligns with several United Nations Sustainable Development Goals. A failed pilot project and a subsequent successful action-research (Avison et al., 1999) case, JUNTOS, highlight the barriers informal sellers face in accessing formal markets. Traditional solutions, such as training (Sutter et al., 2017) and micro-lending (Yunus 1999), are often ineffective (Kistruck et al. 2013). The paper argues that limited success is associated to focusing on helping sellers transition through a regulative-type approach (Scott, 2014). These solutions overlook the deeper issue of the market habitus gap (Pels et al., 2022), which arises from distinct cultural and cognitive dispositions between informal and formal market actors. This paper draws on Pierre Bourdieu’s (1986, 1999) theory of habitus to argue that informal and formal markets operate under different sets of practices, necessitating a new approach. The paper reframes the issue through a cognitive-cultural lens, revealing the existence of a “marketactor void,” where a crucial market actor is missing. This led to the creation of JUNTOS, a permanent intermediary that bridges the habitus gap by facilitating trade and providing both social and cultural capital. Over six years, JUNTOS has proven effective in helping informal sellers access formal markets, offering a sustainable solution and implications for inclusive economic development and public policy.