Utilization of Village Potential for the Development of Village Business Company (VBC) Entities in North Sumatera, Indonesia

DOI

10.2991/assehr.k.220204.053How to use a DOI?

Keywords

Village Business Company; Village Potential; Community Welfare; Development Village

Abstract

Inequality of rural development compared to urban development has become common place in Indonesia. Various policies and programs have been carried out by the government to reduce this inequality. Village Autonomy through Law Number 6 of 2014 concerning Villages is a major breakthrough made by the government to overcome this inequality. The establishment of Village Business Company (VBC) as mandated in the Village Law is one that is considered capable of being a solution for accelerating economic and social development in the village. VBC is expected to be able to explore and utilize all the potential of the village to be utilized in empowering and improving the welfare of rural communities. The purpose of this study is to analyze the utilization of village potential in the development of VBC for the progress of village development. The research design used in this study is a combination of qualitative and quantitative approaches with a dominant-less dominant model, where the qualitative approach is used as the dominant approach, while the quantitative approach is the less dominant. The number of respondents in this study was 300 people, while the informants consisted of village government, VBC managers, VBC partners, and community leaders. The study was conducted on 3 VBC in 3 villages located in 3 regencies in North Sumatera Province. The results showed that most of the respondents (66.7%) stated that VBC managers had optimally utilized the village’s potential in developing VBC in their villages. VBC managers have utilized existing human resources in the village to be involved in the management of VBC, especially human resources from young people. In addition to the potential of human resources, VBC managers have also utilized the potential of the village’s natural resources for business activities and for improving welfare, both economic welfare and increasing the quality of services received by villagers, such as providing clean water services for household needs, and financial transactions through BRI-Link services. The ability of VBC managers to take advantage of village potential and the ability to build networks with various parties is a strategy that must be carried out by managers so that VBC can develop. The support of various parties, especially the village government and district, provincial and central governments is the key to the success of VBC as the locomotive of development in the village.

Copyright

© 2022 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Badaruddin
AU  - Kariono
AU  - Bisru Hafi
PY  - 2022
DA  - 2022/02/15
TI  - Utilization of Village Potential for the Development of Village Business Company (VBC) Entities in North Sumatera, Indonesia
BT  - Proceedings of the Second International Conference on Public Policy, Social Computing and Development (ICOPOSDEV 2021)
PB  - Atlantis Press
SP  - 353
EP  - 356
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.220204.053
DO  - 10.2991/assehr.k.220204.053
ID  - 2022
ER  -