Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Building Partnership or Competition: Village Business Sustainability in Indonesia

Version 1 : Received: 2 January 2023 / Approved: 9 January 2023 / Online: 9 January 2023 (03:31:39 CET)

How to cite: Effendi, S. A.; Sukoharsono, E. G.; Purwanti, L.; Rosidi, R. Building Partnership or Competition: Village Business Sustainability in Indonesia. Preprints 2023, 2023010138. https://doi.org/10.20944/preprints202301.0138.v1 Effendi, S. A.; Sukoharsono, E. G.; Purwanti, L.; Rosidi, R. Building Partnership or Competition: Village Business Sustainability in Indonesia. Preprints 2023, 2023010138. https://doi.org/10.20944/preprints202301.0138.v1

Abstract

This study aims to understand the reality of Village-Owned Enterprises and their implications for rural communities. The focus of this research is to explore the role of Village-Owned Enterprises in carrying out their role as an engine for driving the economy of people in rural areas. Village-owned enterprises have turned into competitors for small rural enterprises. This research uses a qualitative approach, and the informants from Village-Owned Enterprises are the Chairman, Secretary, and Treasurer. Village-owned enterprises become a medium for rural business groups to develop economic potential. The results of the study indicate that the business fields that village-owned enterprises develop have in common with small businesses of rural communities, so it interferes with the sustainability of local communities' businesses. The development of Village-Owned Enterprises is based on building a business chain by involving local economic groups so that the sustainability of community economic business activities impacts the economy of rural areas. Practical implications — Provide academic considerations for regulators to evaluate and reorganize the role of Village-Owned Enterprises for the sustainability of small rural businesses.

Keywords

Village-Owned Enterprises; Partnership; Competitor; Village Economy; village business sustainability

Subject

Business, Economics and Management, Accounting and Taxation

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