Analysis of Factors Affecting the Performance of Village-Owned Enterprises in Cianjur Regency
Keywords:
Village-Owned Enterprises, BUMDes, rural development, social enterprise, Indonesia, performance managementAbstract
This study investigates the performance determinants of Village-Owned Enterprises (BUMDes) in Indonesia, focusing on BUMDes Ciputri Gemilang in Cianjur Regency. Despite the increasing recognition of BUMDes as crucial instruments for rural economic development, many face significant challenges in achieving their dual objectives of economic profitability and social impact. Using a qualitative case study approach, this research explores the internal and external factors influencing BUMDes performance through in-depth interviews, observations, and document analysis.
The findings reveal a complex interplay of factors affecting BUMDes Ciputri Gemilang's performance. Internal challenges include declining sales, ineffective promotional strategies, and high production costs relative to revenue. External factors encompass market competition, changing consumer preferences, and inconsistent government support. The study highlights critical issues in governance, human resource capacity, financial management, and community engagement that impede the BUMDes' ability to fulfill its economic and social mandates.
Despite these challenges, the research identifies pockets of success, particularly in initiatives like the village market project, demonstrating the potential of BUMDes to contribute to local economic development. However, the overall economic impact remains limited due to low profit margins and insufficient community participation.
This study contributes to the growing body of literature on rural development and social enterprises in Indonesia by providing insights into the operational realities of BUMDes. It underscores the need for strategic management approaches tailored to local conditions, enhanced capacity-building initiatives, and more effective policy implementation to support BUMDes development. The findings have implications for policymakers, BUMDes managers, and rural development practitioners, offering a foundation for developing targeted strategies to enhance the performance and impact of Village-Owned Enterprises in Indonesia.
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