Village Owned Enterprises and Sustainable Economics in Cilacap County

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


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

Full Text:



Bilan, Y., Mishchuck, H., & Pylypchuck, R. (2017). Towards Sustainable Economic Development via Social Entrepreneurship. Journal Of Security and Sustainability, June Volume 6 Number 4, pp. 691-702.

Chasanah, K, S. Rosyadi, D. Kurniasih. (2017). Implementasi Kebijakan Dana Desa. The Indonesian Journal of Public Administration 3 (2), pp. 12-32.

Day, S. W. dan Jean-Denise, H. (2016). Resource Based View of Social Entrepreneurship: Putting the Pieces Together. Journal of Strategic Innovation and Sustainability Vol. 11(2) 2, pp. 59-69.

Dhewanto, W., S. Ratnaningtyas, A. Permatasari, G. Anggadwita, & E. A. Prasetio. (2020). Rural Entrepreneurship: Towards Collaborative Participative Models for Economic Sustainability. Entrepreneurship and Sustainability Issues Volume 8, Number 1, (September).

Donaldson, T. & Preston, L. (1995). When Integration Fails. Business Ethics Quarterly 2, pp. 157-170.

Freeman, R.E. (1984). Strategic Management, A Stakeholder Approach. Pitman Publishing Inc.

Freeman, R.E. (1999). Response Divergent Stakeholder Theory. Academy Management Review Vol. 24, No. 2, pp. 233-236.

Goyal, S. & Sergi, B. (2015). Social Entrepreneurship and Sustainability – Understanding the Context and Key Characteristics. Journal Of Security and Sustainability Issues, March Volume 4 Number 3, pp. 269-278.

Kariyani, N.N.Y, IW.K.A. Saputra, & K. Yudistira. (2019). Welfare Level of Arta Murti BUMDes Members Anturan Village, Buleleng District in Term of Social Entrepreneurship Approach. Advances in Economics, Business and Management Research, volume 103.

Mendez-Picaso, M., Galindo-Martin, M., & Castano-Martinez, M. (2021). Effects of Sociocultural and Economic Factors on Social Entrepreneurship and Sustainable Development. Journal of Innovation & Knowledge 6, pp. 69–77.

Rohim, Asmuni, I., & Supriyadi. (2021). Social Entrepreneurship: Village Owned Enterprises Development Strategy. The 3th International Conference On Economics And Business June 12, 2021 pp. 100- 105

Setiawan, I, Disman, Sapriya, & E. Malihah. (2020,) Increasing Social Entrepreneurship Village-owned enterprises (BUMDEs). Advances in Social Science, Education and Humanities Research, Volume 525.

Undang-undang Republik Indonesia Number 6/2014 tentang Desa

Utami, W. & L. Nugroho. (2019). Going Concern Studies Of Government Social Enterprise In Indonesia (Village Government Enterprises Case/Bumdes-Lebak Region, West Java Province-Indonesia. International Journal Entrepreneurship and Management Inquiries Dergisi / Cilt 3 / Sayı 5 / 191 – 206 Setiawan, I, Disman, Sapriya, & E. Malihah. (2020,) Increasing Social Entrepreneurship Village-owned enterprises (BUMDEs). Advances in Social Science, Education and Humanities Research, Volume 525. Setiawan, I, Disman, Sapriya, & E. Malihah. (2021). Village Owned Enterprises (BUMDEs) Social Entrepreneurship Innovation in developing the Potential of Local Wisdom (Case Study on BUMDEs Cisantana, Kuningan Regency). UNISET December 12, Kuningan, Indonesia. DOI 10.4108/eai.12-12-2020.2305120.


  • There are currently no refbacks.