FACTORS AFFECTING THE PERFORMANCE OF SUSTAINABLE VILLAGE-OWNED ENTERPRISES (BUMDes) IN MALANG REGENCY

Abstract

Village-Owned Enterprises (BUMDes) are village business institutions managed by the community and the village government. The existence of BUMDes serves to strengthen the economy by managing the economic assets available in the village. BUMDes in East Java is the largest BUMDes nationally, but its development has not been optimal. Including BUMDes in Malang Regency. This issue renders efforts to improve the welfare of rural communities ineffective. The purpose of this research is to analyze the factors that influence the sustainable performance of village-owned enterprises (BUMDes) in Malang Regency, as well as to recommend strategies for the development of BUMDes in enhancing rural economy. Key informants in the research are the managers of the village-owned enterprises (BUMDes) and village government officials. The unit of analysis is the consumers or users of BUMDes services in Malang Regency, totaling 136 individuals. Data analysis using SEM analysis with the help of Warp-PLS software. The results show that all variables have an influence on the performance of the Sustainable Village-Owned Enterprises (BUMDes) (Y) with significant or strong significance values. However, employee job satisfaction (X1) does not directly affect the performance of the Sustainable BUMDes (Y). Livelihood assets (X3) influence the performance of the Sustainable BUMDes (Y) with weak significance values.