Analysis of Factors Affecting the Sustainability of Village-Owned Enterprise in the Province of West Sumatera

Elvira Luthan, Yulia Yeni, Eri Besra

2021

Abstract

This study aims to examine the effect of financial literacy & competitive advantage on the sustainability of BUMDes from the perspective of improving the village economy. For the current situation, the existence of BUMDes to create an independent village economy is very much needed. Through BUMDes, it is hoped that institutions in rural areas will work together to maximize the welfare of the community and improve the village economy. This is quantitative descriptive verification research. This study uses primary data by distributing questionnaires and interviews. Researchers obtained 37 BUMDes whose data was complete for analysis. The results of this study show that financial literacy and competitive advantage have a significant effect on the sustainability of BUMDes, with a determination coefficient (Adj R2 ) of 69.90%. Partially, financial literacy has a positive and significant effect on the sustainability of BUMDes. This is also the same as the competitive advantage variable. The level of understanding of respondents’ financial literacy is still not good. Socialization and financial literacy training is needed for BUMDES managers so that the goal of establishing BUMDES to improve the welfare of village communities can be achieved.

Paper Citation

in Harvard Style

Luthan E., Yeni Y. and Besra E. (2021). Analysis of Factors Affecting the Sustainability of Village-Owned Enterprise in the Province of West Sumatera. In Proceedings of the 1st International Conference on Emerging Issues in Humanity Studies and Social Sciences - Volume 1: ICE-HUMS, ISBN 978-989-758-604-0, pages 119-128. DOI: 10.5220/0010745100003112

in Bibtex Style

@conference{ice-hums21,
author={Elvira Luthan and Yulia Yeni and Eri Besra},
title={Analysis of Factors Affecting the Sustainability of Village-Owned Enterprise in the Province of West Sumatera},
booktitle={Proceedings of the 1st International Conference on Emerging Issues in Humanity Studies and Social Sciences - Volume 1: ICE-HUMS,},
year={2021},
pages={119-128},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010745100003112},
isbn={978-989-758-604-0},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st International Conference on Emerging Issues in Humanity Studies and Social Sciences - Volume 1: ICE-HUMS,
TI - Analysis of Factors Affecting the Sustainability of Village-Owned Enterprise in the Province of West Sumatera
SN - 978-989-758-604-0
AU - Luthan E.
AU - Yeni Y.
AU - Besra E.
PY - 2021
SP - 119
EP - 128
DO - 10.5220/0010745100003112