The Rural Village-Owned Enterprises Business Models in Improving Rural Community Welfare in Sumberejo District, Bojonegoro

Faishol Abidin; Sugiyanto; Lia Nur Aini; Sujarwo; Afsah Indah Maulidah

doi:10.22500/13202570245

Authors

Faishol Abidin Study Program of Master in Sociology, Universitas Brawijaya, Jl. Veteran, Ketawanggede, Lowokwaru District, Malang, East Java 65145, Indonesia
Sugiyanto Study Program of Master in Sociology, Universitas Brawijaya, Jl. Veteran, Ketawanggede, Lowokwaru District, Malang, East Java 65145, Indonesia
Lia Nur Aini Department of Agriculture of Gresik Regency, Jl. Dr. Wahidin Sudirohusodo No. 245, Gresik, East Java, 61124, Indonesia
Sujarwo Study Program of Master in Sociology, Universitas Brawijaya, Jl. Veteran, Ketawanggede, Lowokwaru District, Malang, East Java 65145, Indonesia
Afsah Indah Maulidah Master’s Program in Agribusiness, Faculty of Agriculture, Universitas Brawijaya, Jl. Veteran, Ketawanggede, Lowokwaru District, Malang, East Java 65145, Indonesia

DOI:

https://doi.org/10.22500/13202570245

Keywords:

BUMDES, Bussines Types, Community Welfare

Abstract

BUMDes (village-owned enterprises) is one of the means aimed at improving the village economy based on the needs and potential of the village. The purpose of this study is to determine the relationship of BUMDes activities with different business type criteria to community welfare in order to evaluate the role of BUMDes with various business type criteria to community welfare. This research is non parametric quantitative research in which the data will be analyzed by Mann-Witney to determine which variables are significantly different, while proving the hypothesis using the Kendall Tau Correlation test. The results of the Mann Witney test prove that there is a real difference in the indirect role of BUMDes on various criteria and show that there are differences in direct and indirect activities only in the type of trading business. The results of hypothesis proving explain that the direct and indirect roles of BUMDes towards increasing income and fulfilling basic needs are significant (α < 0.05) in the types of savings and loan businesses; trade; services and livestock, while towards improving living standards are significant (α < 0.05) in the types of savings and loan businesses; trade; and services. The role of BUMDes is either directly or indirectly related to community welfare in several types of businesses.

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