Building Partnership or Competition: Village Business Sustainability in Indonesia

Abstract

Village-owned enterprises are expected to be a forum for village business groups to develop their economic potential. This research aims to understand the reality of village-owned enterprises and their implications for rural businesses. This research focuses on understanding the perspective of other village entities and asking whether these enterprises enhance the rural economy through partnership relationships or become competitors for rural small businesses. This study used a qualitative approach with informants from the village-owned enterprises management and villagers who run small businesses. The results showed that the village-owned enterprises runs a business that resembles the business fields of the villagers. This situation has unconsciously created a sense of competition for both parties. The atmosphere of competition between the two business entities has the potential to hinder the growth of the village’s local economy. This study recommends that village-owned enterprises evaluate their business activities and build a cooperation network for the sustainability of rural businesses. This research contributes to the enrichment and implementation of sustainability by capturing the context of rural business activities in Indonesia.