Village Owned Enterprises (Bumdes) and Venture Capital Financing Strategy

Abstract

Currently, the government is developing the local economy through the development of community businesses such as MSMEs, traders, and others. Local economic development depends on the community's capacity to explore and manage regional potential, especially the potential of villages. The purpose of this research is to find out how bumdes as a village business institution can take advantage of opportunities as well as to help SMEs with financing difficulties. This study provides some theoretical insights into the use of a strategic management approach in the development of "bumdes". The sample of this research is the people of Maguwoharjo Village and the village government. Data were collected using in-depth interviews and focus group discussions. The analysis technique using Triangulation. The result of this research is that "Bumdes" as a village-based enterprise determines alternative strategies to develop Bumdes, namely intensive strategies. The form of implementing Intensive strategies is product development, while the form is in the form of financial services such as the Bumdes Savings and Loans Business Unit. The Bumdes Savings and Credit Business Unit is a micro-finance institution (LKM).