The Influence of Village Funds and Village-Owned Enterprises on Village Economic Growth

Abstract

This study aims to determine the effect of Village Funds and Village-Owned Enterprises (BUMDes) on village economic growth, with a study in villages in West Limboto District. This study uses a quantitative approach with multiple linear regression analysis techniques with the help of the SPSS 27 program. The data used are secondary data in the form of Village Budget Realization Reports. Measurement of the Village Fund variable uses the village financial independence ratio, while the BUMDes variable is measured by the activity ratio. Meanwhile, village economic growth is measured using the village expenditure growth ratio. The results of the study indicate that Village Funds have a positive and significant effect on village economic growth, as well as BUMDes which also have a positive and significant effect. Simultaneously, Village Funds and BUMDes contribute 83.8% to village economic growth, as indicated by the coefficient of determination (Adjusted R²) of 0.838. Meanwhile, the remaining 16.2% is influenced by other factors outside this research model.