Abstract
The purpose of this study is to identify and analyze the efforts of the BUMDesma Sekar Mandiri in achieving its goals and the impact of the BUMDesma for the people of Sekaran sub-district, especially those involved in BUMDesma activities. In this study, the author uses a qualitative case study method. Data collection techniques in this study were interviews and documentation. The results of the study describe two active business units, namely Lembaga Keuangan Desa and marketing of sub-district superior products, the benefits obtained by the people involved such as social funds, IPTW, training. Several problems were analyzed through the perspective of contract theory. So that produces some suggestions. The limitation of this study lies in the focus of research which only discusses the profile, the mechanism, and the impact of BUMDesma from the point of view
 institutional economics. This research is expected to be able to become a consideration to determine the right strategy in an effort to improve
 community welfare through empowerment.
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