The Impact of Changes in Village Progress on the Income of Village-Owned Enterprises

Abstract

The purpose of this study was to analyze the effect of changes in village progress on the operating revenues of village-owned enterprises (BUMDesa). The data is sourced from the Developing Village Index (IDM), profit and loss statements, and balance sheets for 2019-2020 from 30 BUMDesa units located in Bogor Regency, West Java Province, Indonesia. The method used is a panel data regression analysis approach. The results showed that the model chosen in describing the effect of changes in village progress on the income of Village Owned Enterprises was the Random Effects (REM) Model with an F value of 0.000316 less than a significant level of 5% indicating that the level of development of village progress had a positive effect on operating revenues village-owned enterprises. The results of this study at least provide confirmation to the Government to encourage village progress so that it has an impact on the progress of business institutions in the village.