Examining the Factors Affecting the Success of the Establishment of Village-Owned Enterprises

Abstract

Aims: This study aims to analyze the influence of Village Government Policies, Village Financial Institutions, Resources, and Community Factors on the Success of the Establishment of Village-Owned Enterprises (VOE) with Village Government Support as moderating variables.
 Study Design: SEM WarpPLS.
 Place: Sumberputih Village, East Java, Indonesia.
 Methodology: This research is quantitative research. The research instrument used a questionnaire. The research was conducted in Sumberputih Village, East Java, Indonesia. The sampling process used a simple random sampling technique and obtained 100 respondents. Data analysis using SEM WarpPLS.
 Results: The results showed that the Village Government Policy, Village Financial Institutions, Resources, and Community Factors had a significant effect on the success of the establishment of VOE (Y). Meanwhile, Village Government Support cannot moderate the influence of the four variables on the success of VOE establishment.

Innovation-based diversification strategies and the survival of emerging economy village-owned enterprises (VOEs) in the COVID-19 recession

“…Firstly, unlike traditional SMEs that are business entities established, owned and managed by private individuals and groups (Millers and Gaile-Sarkane, 2021), the VOEs are legal entities and businesses established, owned and managed by the village government in an effort to strengthen the village socio-economic development. Secondly, the establishment of VOEs is largely based on the needs, resource capability and potential of the villages (Yanti et al , 2021) rather than the capabilities of firms. Hence, every village is legally required to establish a VOE as a development model for empowering the community and augmenting the income-generating capacity of the village (Yanti et al , 2021).…”

“…Secondly, the establishment of VOEs is largely based on the needs, resource capability and potential of the villages (Yanti et al, 2021) rather than the capabilities of firms. Hence, every village is legally required to establish a VOE as a development model for empowering the community and augmenting the income-generating capacity of the village (Yanti et al, 2021). Thirdly, unlike SMEs, VOE's conduct business not primarily to seek profit but as a means to support Village Government in solving local, social and environmental problems (Solekhan, 2014).…”