Date of Publication :11th September 2023

Abstract: Many studies of SMEs have been conducted, and most of them focus on barriers to accessing capital, lack of human resource skills and knowledge, and adopting technology. This study aims to look further and review the role of Village-Owned Social Enterprises (VOE or BUMDES) in the SME development of the villages. What breakthroughs can BUMDES do which can lead to innovation? Case studies in two BUMDES, namely BUMDES in Niagara Village Majalaya and BUMDES in Saptosari Village in Gunung Kidul Yogyakarta; both of them in West Java, have been carried out. BUMDES as a social enterprise owned by the village has a significant role. Together with other stakeholders which are village leaders and officials, BUMDES can leverage innovation in village SMEs, making new breakthroughs. The result of this study also recommends executing this plan into action through a model namely a Social Business (VOE) Model Canvas.

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