Increasing Empowerment of Rural Economic Institutions through the Village–Owned Enterprises Development Program

Abstract

This study explains the program’s performance to increase the empowerment of economic institutions of rural communities by the Community and Village Empowerment Office in Sumedang Regency through the village-owned enterprise’s development program. This program aims to aid villages and village governments in establishing and enhancing village-owned enterprises. However, this program is different than expected. Because many village-owned enterprises still do not work, people do not know about the benefits of village-owned enterprises. The research was conducted using a qualitative methodology and the performance program guidance theory to evaluate program performance based on input, process, output, and outcome indicators. According to the study’s findings, the program has not performed optimally. Since several indicators have not been met, in the input indicator, the resources owned do not support program activities. Regarding process indicators, village-owned enterprise managers must improve their skills. Indicators of output reveal that village-owned enterprises could not develop village potential and locate suitable business units. Moreover, the community in the outcome indicators has not experienced the benefits due to a lack of ownership. Without considering the community’s needs, the village council established village-owned enterprises to comply with the rules.