Enhancing Community Economic Growth: Financial System Management of Village-Owned Enterprises in Raya Village Tourism, Karo District, North Sumatra, Indonesia

This study aims to assess the impact of the financial management system of Village-Owned Enterprises (VOEs) in Arih Ersada Raya tourism village on the economic well-being of Raya village residents in the Berastagi sub-district of Karo district, North Sumatra, Indonesia. Employing qualitative and quantitative data, this research utilizes interviews as the primary data collection method. The study employs a descriptive data analysis approach, concluding that the presence of village-owned businesses can significantly enhance the regional economy by facilitating their expansion. These VOEs enable local residents to explore new employment opportunities across various business divisions, ultimately helping them realize their full potential. Village-owned enterprises serve as a critical indicator of the efficacy of economic development initiatives, whether at the village or national level. One of the notable achievements is the establishment of a tourist village that bolsters the local economy. Given that the community plays a central role in all activities, policies geared towards strengthening the local economy through VOEs should be formulated based on the community’s needs and existing conditions. Village-Owned Enterprises RAYA actively manages the growth of these companies to further support the regional economy, with effective planning at its core.