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Optimization of the Role of Village-Owned Enterprises in Increasing Village Original Income through Financial Good Management (Case Study: BUMDes Ngijo)

In: Proceedings of the 8th International Research Conference on Economic and Business (IRCEB 2024)

Author

Listed:
  • Rizky Firmansyah

    (Universitas Negeri Malang)

  • Miranti Puspaningtyas

    (Universitas Negeri Malang)

  • Nisha Alia Ramadhani

    (Universitas Negeri Malang)

  • Nabilla Carissa Ratnadeawati

    (Universitas Negeri Malang)

  • Muhammad Rafi

    (Universitas Negeri Malang)

Abstract

This research aims to analyze the management of Village-Owned Enterprises (BUMDes) in supporting village economic development. BUMDes is one of the important instruments that is expected to drive the village economy through the utilization of local potential. This study uses a qualitative approach with a case study method in several villages that have active BUMDes. Data was collected through in-depth interviews, field observations, and document analysis related to BUMDes management. The results show that the success of BUMDes is strongly influenced by leadership factors, community participation, transparency of management, and support from the village government. In addition, the main challenges faced by BUMDes in optimizing their role are limited capital, low managerial skills, and lack of access to broader markets. Therefore, there is a need for institutional strengthening strategies and capacity building of human resources involved in BUMDes to ensure its sustainability and contribution to village economic development. This research provides recommendations for the improvement of BUMDes management so that it can more effectively perform its function as the main driver of the village economy.

Suggested Citation

  • Rizky Firmansyah & Miranti Puspaningtyas & Nisha Alia Ramadhani & Nabilla Carissa Ratnadeawati & Muhammad Rafi, 2025. "Optimization of the Role of Village-Owned Enterprises in Increasing Village Original Income through Financial Good Management (Case Study: BUMDes Ngijo)," Advances in Economics, Business and Management Research, in: Dediek Tri Kurniawan & Dede Rusmana (ed.), Proceedings of the 8th International Research Conference on Economic and Business (IRCEB 2024), pages 205-218, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-722-9_18
    DOI: 10.2991/978-94-6463-722-9_18
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