ENFORCEMENT & RURAL ECONOMIC DEVELOPMENT VOE - BUMDes (VILLAGE-OWNED ENTERPRISES)

Purpose - This research is investigate fundamental factor of that influence village economic development based on Village-Owned Enterprises [VOE] or (BUMDes) by investigating the relationship between the influence of capital participation, human resources, governance, and rural area planning on the development of the village-economy based on VOE in the Regency/City of North Sumatera Province. Design/methodology/approach - The study approach employed is quantitative survey research, in which data is collected from a population sample that is meant to reflect the entire population. A research questionnaire was distributed to the entire population, fifty-three BUMDes in North Sumatera. Five hundred twelve questionnaires were distributed, with nine respondents for each BUMDes, and four hundred ninety-eight were returned. After processing the data with multivariate statistics analysis, the research shows that human resources, capital participation, governance, and regional planning all have a small impact on the growth of the BUMDes-based village economy. Research limitations/implications - In multivariate analysis, the structural model is evaluated using the R-square for the dependent variable and the path coefficient for the independent variable, then tested for significance using the t-statistic value for each path. Thus, Y equals 0,147 X1 + 0,165 X2 + 0,319 X3 + 0,153 X4. Originality/value - Village fund allocation is a stimulant to finance and encourage village government programs based on community self-help, mutual collaboration, and community empowerment. And the study found that human resources, capital participation, governance, and regional planning all contribute to the development of VOE-based village economies