Village Owned Enterprises and Sustainable Economics in Cilacap County

Wita Ramadhanti, Oman Rusmana, Triani Arofah, Yoma Hendra Harjasa

Abstract


According to Undang-undang Number 6/2014 Village Owned Enterprises (Badan Usaha
Desa/ BUMDES) is an economic powerhouse for the village government in attaining Village Origins Income (Pendapatan Asli Desa). This income should be sustainable economically in the long run. Therefore, it is important to examine the determinants of economic sustainability created by Village Owner Enterprises. Based on that, this study will test the effect of socio-cultural, economic characteristics, and social entrepreneurship on sustainable economics.

This is quantitative research using the survey method. Questionnaires are using the Likert Scale. Data are taken from 24 Village Owned Enterprises managers in Cilacap Region. The purposive sampling method is employed in order to choose the respondents. Data were then analysed using WarpPLS.

The result of statistical testing is as follows. First, economic characteristic has a positive effect on social entrepreneurship. Second, social entrepreneurship has a positive effect on sustainable economics. Third, from the first and second can be concluded that social entrepreneurship fully mediates the effect of economic characteristics on sustainable economics.

This is consistent with Resources-based Views. It means that the higher entity capital will lead to a higher induce of social entrepreneurship among village citizens. More social entrepreneurship among its resident will lead to higher economic sustainability in the village.

Keywords: Socio-Cultural, Economics Characteristics, Social Entrepreneurship, Sustainable Economics, BUMDES


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References


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