THE EFFECT OF SOCIAL CAPITAL TOWARDS VILLAGE OWNED ENTERPRISE'S (BUM DESA) BUSSINES EFFECTIVENESS (STUDY CASE OF BUM DESA ARYA KAMUNING, KADUELA VILLAGE, KUNINGAN REGENCY, WEST JAVA PROVINCE)

• Main Author: Tsarwatul Jannah, Nabila
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/87048
• Institution: Institut Teknologi Bandung

One of the development efforts in the rural area is through rural entrepreneurship. The form of rural entrepreneurship in Indonesia has been adopted as a Village- Owned Enterprise (BUM Desa). Previous studies have shown the influence of social capital on entrepreneurship where it was found that social capital has a positive and negative influence on business organizations. The purpose of this study is to identify the influence of social capital on the effectiveness of BUM Desa businesses by identifying elements of social capital (structural, relational, and cognitive) in business decisions made by BUM Desa. This study uses a qualitative case study method which looks at the success of BUM Desa Arya Kamuning in managing its business and tries to identify the influence of social capital on the success of the business. The results of the study show that the goal to be achieved or the effectiveness of the BUM Desa business is public trust in the BUM Desa business. In order to realize this goal, BUM Desa places all the resources it has (information, knowledge, money) to achieve the goal. Business decisions as a strategy carried out by BUM Desa to gain trust appear to be influenced by social capital such as networks and forms of networks that are formed, shared values and narratives that are developed and disseminated, and conditioning relationships with the community. Structural and cognitive dimensions have a positive influence on business effectiveness through access to business development and opening new businesses. The relational dimension provides motivation and foundation for business development and opening new businesses of BUM Desa. A negative influence of the cognitive dimension was identified, namely the absence of shared values and narratives from the community due to the lack of community trust in the BUMDesa business. In addition, it was found how the relational dimensions of bonds and expectations have a negative influence by creating financial expectations of BUM Desa which can eliminate trust when expectations are not met. This shows how BUM Desa Arya Kamuning gains trust is through the growth of transactional relationships between the community and BUM Desa where BUM Desa carries out the financial expectations given to BUM Desa. This study shows how successful BUM Desa Arya Kamuning is with its business strategy to achieve business effectiveness, namely gaining community trust so that this study can provide input on policies and support activities provided to BUM Desa to develop business strategies that foster trust in the community.