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Eduvest � Journal
of Universal Studies Volume 3 Number 1, January 2023 p- ISSN
2775-3735- e-ISSN 2775-3727 |
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BUSINESS MODEL ANALYSIS OF
JOINT VILLAGE-OWNED ENTERPRISES IN THE SERVICE OF THE NEEDS OF THE VILLAGE
COMMUNITY |
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Junike Susan Medah,
Wahyuningsih Santosa Universitas
Trisakti, Indonesia |
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ABSTRACT |
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Research at BUMDesma Bangkit Mandiri Sejahtera (BMS) Nita District, Sikka Regency,
East Nusa Tenggara Province aims to analyze the variables of the type of
business and beneficiaries, business models, governance, access to
information and technology, challenges, business development strategy,
contribution to local government, poverty alleviation, SDGs indicators
including village SDGs. This study uses qualitative methods, data collection
techniques through in-depth interviews, focus group discussions, observation
and study of documents as well as analysis using content analysis. The
results of the research show that BMS has not been optimal in implementing
business models according to the Radyati-Rio Clocwise Social Model Business Plan, governance according
to ISO 26000, and utilization of access to information, and technology.
challenges and business development, but BMS also contributes to the regional
government, poverty alleviation efforts, and achievement of SDGs indicators
1, 2, and 8 as well as village SDGs 8 and 12. Strengthening capacity,
evaluating employee and organizational performance, managing data, and
information, and mastering technology need to be done to be able to compete.
The implications of this research for capital institutions, business
partners, and the government which play an important role in village
community empowerment programs |
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KEYWORDS |
Business
models, governance, information and technology, challenges, business
development, local government, poverty alleviation, SDGs |
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This
work is licensed under a Creative Commons Attribution-ShareAlike
4.0 International |
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INTRODUCTION
Poverty eradication is a national policy priority of
countries according to sustainable development goals. In Indonesia, poverty
alleviation is carried out through
entrepreneurship and micro-small enterprises in Village-Owned
Enterprises (BUMDes) and Joint Village-Owned Enterprises (BUMDesma).
�Factors that cause success in its
management are communication, accounting information systems, human capital, leadership style, encouragement, workplace situation
and conditions, compensation, capabilities, organizational achievements,
responsibilities, organizational culture, capacity
strengthening, the effect of job satisfaction, and
governance. Meanwhile, failure factors are quite varied, namely encouragement, education, age, and work experience (Aprili, 2021). �In NTT out of 3,026 villages there are 2,173 BUMdes and 763 of them are inactive. �There is no data on the number of BUMDesma in NTT. �In Sikka Regency, there are 71 BUMDes and 44 of them are inactive.
����� Efforts to
alleviate poverty are carried out through community empowerment programs (TNP2K, 2022). Government policy for productive economic growth
of villages by developing entrepreneurship and micro-small enterprises through Village-Owned Enterprises (BUMDes) based on Permendagri
Number 4 of 2015.
���� Activities to
optimize the village economy and entrepreneurship through BUMDes
/ BUMDesma institutions for village community
services in the form of a) Simple social enterprises that provide public
services to the community are social and still obtain financial benefits, b)
Renting village assets provided to BUMDes as capital
participation to support the increase in village income, c) Brokering
businesses marketing the results of village communities,� d) Production and/or trading business
(trading) according to the needs of the community and sold, e) Financial
business (financial business) sufficient micro-scale business capital according
to the ability of the community, f) Joint business (holding), as the parent of
local business units in the village. Empowerment efforts carried out by BUMDes/ BUMDesma need to pay
attention to aspects of sustainability and entrepreneurship.
BUMDes
activity is a Social (Community) Enterprise that was formed in an effort to overcome social problems and
provide sustainable solutions in the form of
concerns that provide added value from local resources that are available but
neglected. �Social Enterprise (SE) is owned by an individual and community Enterprise (CE) ownership is a specific community.� (www.mmsustainability.ac.id).� As an independent entity that
delivers social and environmental outcomes and invested in developing businesses
and community needs, owners also make a profit (Hazenberg,
Patel, 2021)
It is important for BUMDesma to manage business types in a sustainable manner by reaching
beneficiaries and consumers by applying the right business model and considering trends, access to information and technology to be able to face internal
and external challenges so that business development carried out by BUMDesma can be carried out to improve service needs of village
people. Business management by applying the right Business Model and surviving
in changing situations and socioeconomic climates. �Business strategy with Business Model Canvas in research in Jatimulya Village,
Serdang Regency stated the factors that
influence the Business Model Canvas at BUMDes-Mart,
namely in terms of market and financial segments (Prawijaya,
Harahap, 2022).
BUMDes in
carrying out governance requires a strategy of developing systems and standard
operational procedures in marketing and e-commerce practices ubecome an alternative to reach a wider area. In addition, BUMDes also need to pay attention to aspects
of infrastructure, the latest production, network expansion, periodic capacity
building and organizational culture (Rahmawati,
2020).
The development of BUMDes is
regulated �in the Regulation
of the Minister of Villages for Regional Development and
Transmigration No. 3 �of 2021 Article 26 which� presents guidelines on aspects of the �development of BUMDes and BUMDesma (Kemendesa, 2021) for �strategies for BUMDes
in reaching services to village communities which are programs of the local
government�� in accessing basic needs so
that and providing support to poverty alleviation efforts because villages have 74% contribution in supporting
the achievement of 17 sustainable development goals (republika.
co,id, 2021)
Based on the various regulations, resources and problems
described there is a need for research aimed at analyzing the types of
businesses and beneficiaries of BUMDesma business
services, business models that are carried out in answering community needs,
governance based on ISO 26000, taking advantage of access opportunities to
information and technology that support services to the community, challenges
faced by BUMDesma, analyzing development strategies
that ensure business sustainability,�
contribution to local governments, analyzing the role in poverty alleviation
efforts and analyzing the contribution of achieving indicators of SDGs 1,2 �and 8 and SDGs
in Villages 8 and 12.�
It is a way of running a
business by a company to make money and
maintain and how to pour the logic of business
strategy, pay attention to value or target customers
and create value, process, capture it as a business strategy opportunity.�� ��The Canvas Business Model is widely used but lacks a competitive analysis of the market
structure, although the majority of definitions of the Business Model are
resource-based (Hong and Fauvel, 2013; Faghih et al,
2018 in Sadhegiani, 2022).� Radyati-Rio
Clockwise Social Business Model Plan (Radyati, 2018) consists of nine elements, namely business
objectives; activities, products, services; target beneficiaries,
consumers, resources; distribution channels,
relationships with consumers, social business partners, cost components and
sources of income.
ISO 26000 Governance � Sustainability Development Theory
ISO 26000 is an international standardization and social responsibility
guide and one of the subjects is governance, which is a way of managing
decision processes taken and implemented to achieve organizational goals based
on the seven principles of social responsibility contained in ISO 26000.� The seven principles are accountability,
transparency, ethical behavior, respect for the interests of stakeholders,
respect for the interests of stakeholders, respect for rule of law, norms of
international behavior, and respect for human rights.
Many world and Indonesian experts pay attention to the
concept of Sustainable Development. This sustainable
development design in its development is not only
guided by �the bottom line, namely people,
planet, and peace which in nature www.youmatter.world said there are two additional
aspects, namely prosperity� and� partnership. These aspects are focused on ending poverty, hunger
through sustainable management of natural resources so that communities are
peaceful, just and inclusive, free from fear to ensure a prosperous life and
progress in harmony with nature because they are carried out together through
global partnerships and solidarity.
Information and
Technology - Marketing Strategy Theory,
Consumer Confidence Theory Theory,
���� According to Yulianti
et all (2019) in the book Marketing Management states that marketing strategy
is decision-making carried out regarding costs, marketing allocations, and
relationships with appropriate environmental conditions and competition.� Furthermore, in this marketing strategy, it
can be seen in four types, namely a) There is an increase in the number of
users with available primary needs; b) an increase in the purchase rate; c)
selective needs by retaining customers, and d) attracting new customers.
����� The running of a business
entity is inseparable from how customers believe in the goods available and
sold. According to Upamanyu et al, 2015, with the
trust given by consumers, they will get benefits so that the business is
sustainable (Samawa and Sugianingrat,
2022)
����� This theory is in line with the
opinion of Surapati (2020) who adapts Oliver's (1999)
opinion that loyal customers are committed to buying goods and services in a
certain company for a long time and suggest to other consumers to become
customers at the company.
According to Valentinov
and Anna Hajdu, 2019, citing Jones et al (2018, p. 385)
states that the stakeholder approach to management in complex environmental
conditions is an effective way of looking characterized by dynamism, knowledge,
intensive business activities, and interdependence in tasks and outcomes (Jones
et al., 2018, p. 381; cf. Bezler et al., 2019).
Indonesia's poverty alleviation program is
guided by the National Medium-Term Development Plan (RPJMN) 2020-2024 aimed at
making citizens independent, leading, equal and prosperous through accelerated
development that is able to compete with the support of quality human
resources. The Poverty Elimination Program is carried out through the
procurement of facilities and infrastructure for individuals or groups, capacity
building through training and vocational activities, the ability to obtain
capital, land use and productive goods, entrepreneurial ability through
mentoring and increasing access to capital and markets, the sustainability of ultra micro and micro enterprises.
The agreement of 193 world countries as a global
step according to human rights to advance
development in various sectors of social, economic, ecological, legal development, and governance includes 17 goals and 169 targets (sdgsindonesia.or.id).� In Indonesia, the implementation of the achievement of the SDG's goals in a participatory manner is described in the Rencana Pof building Jnumber Menengah Nasional (RPJMN)
for 2020-2024.
Usaha
micro contributes to economic improvement as one pillar of SDGs. According to Vandermheen and Tichar (2019),
sustainable efforts in agribusiness provide employment opportunities for women
and young people. �So transformation in
the field of agricultural entrepreneurship can be
related to the achievement of SDGs indicator 1
on poverty alleviation, indicator 2 without
hunger, indicator 8 on decent work and
economic growth and other indicators, namely SDGs 5 (gender) and SDGs 17
(partnerships). The Indonesian government also encourages various economic and
entrepreneurial activities at the village level because it contributes 74% to
the achievement of the SDGs. Referring to the Regulation of the Minister of
Villages for Development of Disadvantaged Regions and Transmigration number 13
of 2020, in addition to the 17 Sustainable Development Goals for Village SDGs,
there are 18 objectives, namely dynamic Village Institutions and adaptive culture
(Kemendesa, 2021)
Research at BUMDes Bhakti, the main village of Cilembu on "BUMDes Business
Development Model Based on the Sharing economy and Gig economy
Approach"�� states that new business
businesses need to take advantage of opportunities and implement the digital
economy according to business development (Sudewa and
Fahreza, 2021). �Research on the
business strategy of
the Business Model Canvas BUMDes Mart Berkah Desa
Jatimulya Serdang Regency states the factors that affect the Canvas Business Model at
BUMDes-Mart, namely in terms of markets and financial
segments (Prawijaya, Harahap, 2022).
The study on the Role of BUMDes Stakeholders in
Mitra Sejahtera Mendongan Village, Sumowono District, concluded that cooperation,
participation, independence, propriety, and equality are still not good (Nurfakhirah et al, 2021). Another research in the
implementation of BUMDes Ciherang
governance concluded that it is necessary to build synergy to produce Standard Operating Procedures (SOPs) for
product marketing including e-commerce for a wide reach and multiplier effect for rural communities
(Muksin et al, 2021).
Another research
with the object
of BUMDesma Bangkit Mandiri
Sejahtera (BMS) in Nita District, Sikka Regency, regarding the effect of
capital participation in
the original village income shows that there is no significant effect of capital
participation and the remaining business results on the original village income
(Nuwa and Apelabi, 2022).
Penelitian in Africa on Food
Entrepreneurship (Nwuneli, 2021) stated the
differences in entrepreneurship, including the needs, opportunities, and
infrastructure in a region, consumer and customer profiles, the ability and
willingness to make payments, and the ease of doing business. Di Nigeria, the
business is carried out in stages to strengthen and develop the business.
RESEARCH
METHOD
This research uses qualitative methods with variables of business type and
beneficiaries of BUMDesma, how the Business Model is
based on the Radyati-Rio Clockwise Social Business
Model Plan, governance according to� ISO
26000, utilization of information and technology i
according to guidelines (Santosa, 2022),� internal and external challenges (Chandra,
2022), aspects of BUMDes development (Permendes no.2/2021), contribution to� local governments (RPJMD of Sikka Regency),
role in poverty alleviation (Kemenkeu.go.id) and� BUMDesma services
related to SDGs and Village SGDs (SDGs indicator metadata).
The data collection method uses in-depth interviews, Focus Group Discussions
(FGDs), and observations. The analysis used is content analysis and is carried
out in the period from September 2022 to January 2023 with purposive sampling
techniques. The data used are secondary and primary data with the resources of
the management team of BMS, advisors, beneficiaries, Provincial and District
Governments, assistance field staff of the Ministry of Rural� Affairs, Financial Institutions, and
BMS partners.
RESULT AND
DISCUSSION
Overview of
Village-Owned Enterprises together with Bangkit Mandiri Sejahtera (BMS)
BMS is located in
Nita Village, Nita District, Sikka Regency, East Nusa Tenggara Province (NTT)
through the Joint Regulation of the Village Head of Nita District Number 1 of
2017 dated July 21, 2017, concerning Cooperation between Villages formed by agreement of 12 Village Heads in Nita District,
namely Nita, Takaplager, Tebuk,
Ladogahar, Nitakloang, Wuliwutik, Lusitada, Bloro, Riit, Tilang,
Nirangkliung, and Mahebora who consider it necessary to manage a business in one area
and revitalizing the National Program for
Community Empowerment (PNPM) funds which have been established at the end of
2016. �BMS has a Certificate of
Registration for the Establishment of a Legal Entity from the Ministry of Law
and Human Rights (Kemenhumkam) dated July 24, 2022
Number AHU-00261. AH.01.35.
����� Based on the statutes and bylaws, BMS
carries out economic activities and or public services with legal entities that
carry out the functions and objectives of BUMDesma
which are determined through inter-village deliberations (MAD) by 12 villages
in Nita District, Sikka Regency.� Until 2022,
the business units run are credit units, trade units, and market management
units, and communities located in the Nita District
area in 12 villages are beneficiaries.
a.
Purpose, Vision, Mission, Problems, and Solutions
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The purpose of BMS is to improve the welfare of the community in the
economic field with the vision of providing economic and bidaya
facilities that care about the environment and are managed professionally. The
mission of BMS is through providing means of production, preserving and
developing local culture, partner, and provide the best service. Analysis of
BMS problems identifies the presence of bad debts in credit services, price
fluctuations, availability of merchandise, and marketing aspects. Another
problem is the Covid-19 pandemic and the increase in fuel prices. The solution
carried out by BBM is to coordinate with the village, sub-district and district
governments to assist in solving these problems and build cooperation with
partners to develop business capital.
In addition to the solutions made above, BMS also seeks
to carry out other strategies in the form of a p enyampaian
laporan perkembangan
through monthly meetings and regular
assistance to credit groups and borrowers.
b. Activities,
Products and Services
��������������
Since BMS was established in 2017 and BMS began to carry out various
activities and in 2019 carried out arrangements in the business sector.
Table 1
BMS Business Units, Products and Services in 2019 sd.
2022
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No. |
Business Units |
Product |
Service |
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a. CREDIT |
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1 |
Independent
Business Credit (KUSUMA) |
Agricultural
business capital |
Individual Loan. �The loan amount is Rp. 1 million � Rp. 10 million, with a
maximum loan period of 36 months. Group loan interest 1%/ month,
individual 1.5%/month |
|
Weaving Business |
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Educational Needs |
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2 |
Ex-PNPM revolving
fund |
UEP (Productive
Economic Business) and SPP (Women's
Group Savings and Loans) |
Loans are
prioritized for people who are not in arrears. Revolving refunds can be made
through KUSUMA |
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b. TRADE |
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1 |
Tenun Ikat Material (�Sarong�
Gallery) |
Weaving Yarn and
dyes |
Direct selling in
BMS Stores and various markets in Sikka Regency Plan to become a
Weaving Gallery |
|
2. |
Agricultural
production facilities (Pondoq Pa' Tani) |
Seeds, Fertilizers,
pesticides, agricultural
equipment |
Selling BMS Stores
and various markets in Sikka Regency |
|
Water tank car for
agricultural needs |
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3. |
Suppliers and
Agricultural Products |
Vegetable yield
from Farmers |
Buying farmers'
products and selling in sub-districts
in Sikka district and nearby districts (Ende, East Flores, Lembata) |
|
4. |
Basic and daily
necessities |
Nine staples |
Butuan goods are
sold in BMS Shops and Markets |
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5. |
Building Materials
(2022) |
Semen |
Procurement of
Cement and delivered according to the address of the request |
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6. |
Office Stationery |
Office stationery
supplies and materials |
Provision of office
materials and stationery provided in stores and Cooperation with other BUMDes |
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c. MARKET
MANAGEMENT SERVICES |
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1 |
District Market
Management |
Market Levy and
market structuring |
Grouping of traders
by type of sale, Facilities: public
toilet electricity and clean water. Kontrak per year.
Contribution to the Government Rp. 15 million/year. Is a source of
operational financing. |
Source: BUMDesma BMS Report
c.
Target Consumers and
Beneficiaries
The BMS business not only reaches consumers
in Nita District but in five other districts in Sikka district, namely Lela, Koting, Nelle, Mego, and Magepanda. For agricultural products, BMS also reaches
consumers outside the district including Ende, East Flores, and Lembata. Beneficiaries consist of individuals and groups
who access business services from all the regions mentioned above.
d. Resources
BMS has a fairly complete resource including
inputs and raw materials including humans, machines and technology in the form
of fixed assets, intangible assets, and social assets.�
However, BMS only provides facilities and infrastructure in
collaboration with suppliers and the production of goods directly by consumers
and beneficiaries.
In Social Plan, BMS has social capital including a) Social Bounding through familial, language,
and cultural kinship that facilitates communication, coordination, and
negotiation, b) Social bridging managing
poverty alleviation programs ex-PNPM in 12 villages of Nita District, c) social
relationships ��(Social
linking) in the form of the role and support of stakeholders such as the
Government, indigenous leaders, and the community.�
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Intellectual capital in the form of Human Capital (Human capital) based
on surplus consists of advisors, administrators, supervisors, and 12 employees
who carry out functions and duties, while organizational capital can be seen
from the formation and organization of BMS based on the Joint Decree of the
Village Head, business entity permits from the Ministry of Law and Human Rights
and its management guided by AD / ART.
Table 2
Resources That BMS Has
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Resources |
Kind |
Shape |
Information |
|
Input / Raw Materials |
Fixed Assets |
Buildings, inventory, office supplies and
computers Accumulated depreciation |
IDR .553.227.546 |
|
Intangible assets |
land lease rights of 1000 M2 |
- |
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Current assets |
Cash, receivables, securities, inventory
of merchandise, and investments. �BRI and BNI Bank
balances, baran inventory, expired goods. |
IDR 1,108,226,707 IDR. 1,2 Miliar |
|
|
Workforce |
15 employees (5 years of service) |
Recruited from 12 villages in Nita
District |
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|
Supplier |
Trading partners |
15 Partners in Maumere,
Ende, Surabaya and Makasar |
Procurement of goods for trading business |
|
Production Process |
Agricultural and weaving business |
BMS does not directly produce production
(from borrowers) |
Buying and selling products from rural
communities |
|
Financial Capital |
Capital Participation |
12 Village Chiefs |
IDR 575,000,000 |
|
Financial Institutions |
KUR fund loans |
IDR. 1.2 billion |
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PNPM ekx fund |
UEP and SPP Funds |
IDR, 4,7 billion |
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|
Market Management Services |
Levy fund |
IDR. 40 million/year |
|
|
Advantages of the Sale of goods |
Merchandise sales services and credit
business |
Utilized for BMS activities |
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|
Social Capital |
Social Adhesives |
Culture and language alike |
12 Nita Kec.
Village |
|
Social bridges |
PNPM fund management |
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Social relations |
The kinship between government and society |
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Intellectual Capital |
Human Capital |
Advisors, supervisors, administrators, and
employees |
SK with the Village Head, SK Kemenhumkan, AD/ART |
|
Organizational Capital |
The Force of Law |
Source: BUMDesma
BMS Report
Consumers and beneficiaries are
the most important part of a managed business. For this reason, it becomes
important for BMS to maintain and maintain these relationships. Through the Inter-Village Deliberation (MAD) and village level meeting
(MusDes),
�BMS communicates all
developments plans and challenges, and progress so that they can be conveyed to
the people of Nita District as consumers and beneficiaries.������ The submission of BMS progress reports
is a strategy to maintain relationships so that they transparently know the
form of services and benefits they get. Informal relations are carried out
through meeting bulanan and gathering together, field visits, and communication via telephone, text messages, and WhatsApp
which is carried out as needed and not routinely.
f. Social
Business Partners
From 2018 to 2022,
there are 15 partners who support BMS, namely from trading businesses including
suppliers from the cities of Maumere, Ende, Surabaya,
and Makasar for agricultural and weaving goods. As
for basic necessities, building materials, and office stationery, it partners
with companies in the city of Maumere. The District
and Subdistrict Governments are business partners in sub-district market
management services.� Through
partnerships, there is a shared value (CSV) where BMS benefits by getting lower
prices for goods, gaining profits for business development and community
services, while partners get a fixed subscription for regular sales of their
goods every month and for the BMS government to assist in supporting poverty
alleviation programs.
Direct costs are costs that have to do with a
specific cost goal and a large part is variable costs. �Indirectiaya is a
cost incurred in excess of the costs when making a business product or service.
Indirect costs consist of fixed or variable costs (Spielman,2022). The direct
costs of BMS are salaries, purchases of merchandise, office construction and
operational costs. Indirect costs incurred by BMS consist of tax costs, bank
administration, depreciation, purchase of equipment, distribution of SHU,
employee benefits and credit interest costs.
�BMS's largest revenue
is derived from four main sources consisting of
agricultural production facilities, ikat weaving, basic necessities and
agricultural commodities as well as office stationery as can be seen from the
BMS sales report from 2018 to September 2022.�
Table 3
Sales Recap on business types in 2018 - September 2022
|
Types of Sales |
Recap Sales Per Year (Rp) |
Total |
||||||||||
|
2018 |
2019 |
2020 |
2021 |
2022 |
||||||||
|
Agricultural Production Facilities |
116,061,500 |
137,205,000 |
563,470,000 |
379,684,500 |
925,347,667 |
2,121,768,667 |
||||||
|
Weaving �(tenun ikat) |
154,395,000 |
425,318,500 |
771,010,000 |
643,210,000 |
539,582,00 |
2,533,515,500 |
||||||
|
Groceries |
9,132,500 |
111,000 |
67,222,000 |
399,892,000 |
476,357,500 |
|||||||
|
Office Writing Tools |
4,180,500 |
4,180,500 |
||||||||||
|
Sum |
279,589,000 |
562,634,500 |
1,401,702,000 |
1,022,894,500 |
1,869,002,167 |
5,135,822,167 |
||||||
Judging from the product sales data above, BMS's source of income from
2018-2022 is more in the ikat weaving business of Rp. 2,533,515,500 and
agricultural production facilities of Rp. 2,121,768,667. After that, the sale
of basic necessities and office stationery will only be carried out in 2022.
Meanwhile, judging from sales per year, the highest sales occurred in 2020.
����� the change in the type and number of
sales is due to the fact that from 2020 to 2022, BMS builds partnerships with
the Agricultural Foundation to assist farmers in technical cultivation and
procurement of agricultural production facilities. But during the Covid-19
pandemic, affects people's purchasing power and selling power, while staples
for community needs have increased in 2022. BMS provides lower prices than
other competitors in Nita District.
Other
income comes from the repayment of
productive economic business (UEP) credit loans from
the previous PNPM program, Nita sub-district market management in the
form of managed levy payments and the sharing of
proceeds with the government and loan services
from loans in the form of interest of 1% per month for group loans and 1.5% for
individuals.�
������ The results of the analysis
concluded that BMS needs to optimize aspects of resource management,
specifically knowing the characteristics of consumers, beneficiaries, and
business partners as well as income management to reach more support from the
community and stakeholders for more optimal village community services. Previous
research on Business Models using the Business Model Canvas at BUMDes Cilembu shows that it is necessary to take
advantage of opportunities by implementing the digital economy. This is also in
line with the findings in BMS, especially the resource aspect because it does
not yet have skilled personnel to manage the business through publication
media, e-commerce, and technology.
BMS services as a
business entity not only help the needs of the community and improve the
economy but still have benefits for them according to the principles of community entrepreneurship and the type
of business developed pays attention to the principles of sustainable
development that focuses on 5P, namely People,
Planet, Peace, Prosperity, and Partnership.�
���
The system of making and implementing corporate decisions
in order to achieve its objectives (ISO 26000) includes seven elements, namely
accountability, transparency, ethical behavior, respecting the interests of
stakeholders, obeying legal regulations, international norms of conduct, and
respecting human rights.
a.
Accountability
In the management of BMS, there are two
things consisting of a) Commitment and accountability and how the
decision-making carried out by BMS include MAD and MusDes
is a form of accountability BMS submits reports on business development, Finance, planning, and
target next year. b) Monthly Meetings, through a meeting with the Village Head and BMS administrators to discuss the progress of BMS and various challenges and
opportunities. c) Financial Statements; BMS routinely makes financial
statements to be accounted for.
����� The thing that needs to be considered by
BMS is that regular meetings and MAD do not run as scheduled, and BMS has not
paid attention to the rights of the agreed capital participation, causing
suspicion.� BMS's internal problems with
financial misuse were not resolved appropriately. Until 2022, there has been no
change in personnel, duties, and functions of employees. Evaluation of employee
work performance is not carried out so it is not identified employee
satisfaction and motivation at work. These findings show that there are several
things that have not been done by BMS in connection with decision-making in the
form of MAD, division of surplus, and evaluation of employee performance.
Transparency
Reviewed from two aspects: a) the development of goals
and targets where BMS has goals, visions, and missions outlined in statutes and
bylaws All achievements and problems faced are communicated, coordinated, and
negotiated through various formal and informal forums to get support from
various stakeholders.���� b) Using
resources efficiently, BMS Employees work according to the duties and
responsibilities of each division set out in the rule including credit, trade,
and market divisions, public relations departments, chairmen, secretaries, and
treasurers.
This is still not optimal because the achievement of
goals, visions, and missions has not been realized until 5 years of BMS. Formal
performance evaluations are never carried out so it has an impact on financial
abuse. BMS has not utilized technology and publication media in the
digitalization era to support organizational transparency because it requires
additional financing.�� The existence of
these limitations has an impact on the slow growth and development of BMS due
to the inability to compete with various competitors so the services needed by
the village community are not optimal.
The running of a business entity is followed by how its
employees have ethical behavior in carrying out their duties and
responsibilities in serving the needs of the community. This is demonstrated
by: a) A fair chance for the underrepresented. Labor that is based on objective
evaluation if considered good can get a
promotion to a position to increase creativity and enthusiasm that supports the achievement of the goals
of a company (Purba, 2020_.
Since BMS was formed and running until 2022, BMS employees who were recruited from
twelve villages in Nita District until now have been
evaluated for performance so that they do not
know the achievements of each employee giving awards. But promotion is not in
BMS planning. b) Encourage active participation for all employees performed
based on duties and responsibilities in their respective employment contracts.
���� The activities
carried out in connection with these ethical behaviors, have not been carried
out optimally by BMS. This is not in line with what is stated in the AD / ART.
This results in employees not being able to innovate to achieve targets and
resulting in the inability to compete.
The role of stakeholders is very important in building a
BMS business. Some of the steps taken by BMS are a) Balancing the interests of
stakeholders. Capital participation from� 12 Village Heads with a total of Rp.
575 million, BMS provides SHU to each village according to the agreement in the
AD/ART. P agreed with the sub-district
government and regency to grant land lease
rights and market management of Nita District showing the trust of
stakeholders. So that BMS manages it appropriately to support government
programs in community empowerment. Similarly, stakeholders include suppliers,
financial institutions, and agricultural foundations who demonstrate a common
contribution to realizing their respective targets. b) Establish two-way
communication with stakeholders, in formal and
informal forms for smooth activities and build mutually beneficial cooperation.
�� Taking into
account the role of stakeholders in various BMS activities shows the position
of stakeholders in determining the sustainability of the BMS business has an
important portion to realize the goals, vision, and mission.
Obeying
Legal Regulations
The governance carried out by BMS in relation to
complying with the law can be seen from a) Decisions are taken in an
appropriate manner, and communicated with stakeholders through the MAD forum
every year. BMS administrators and employees carry out their duties and
responsibilities according to the contract and targets of each division. There
are several things that have not been done as seen from the absence of a
written BMS agreement with suppliers in Maumera for
reasons that it is easier to get suppliers based on a cheaper and faster price
situation without an agreement. In contrast to suppliers from outside Sikka
Regency, namely Ende, Surabaya, and Makasar.� b)� �Balancing authority and
responsibility according to capacity, BMS personnel have authority and responsibility according to their position as stated in the employment
contract. Advisor and supervisor to perform supervisory functions and provide
constructive advice in the implementation and
development of BMS. The BMS management as an operational implementer has the
authority to make internal policies and promote
and disseminate activities and program initiations
including the management of BMS asset utilization.� The board also ensures that all employees
work according to their functions and plan development
programs and strategies and monitors business service activities even though in
reality no employee performance evaluation has been carried out.
�����
These two things need to be done by BMS to build trust with various
stakeholders and the community and specifically BMS employees so as to place
them as trusted business entities because they are able to act according to the
authority in making the right decisions.
International
Norms of Conduct
����� As a business unit entity that has a
legal entity, BMS has an obligation to comply with international norms of
behavior in running a business unit; a) Reviewing and evaluate governance
periodically, according to the work period of the management and employees for
five years in accordance with the statutes and bylaws and the work contract
regulates the duties and responsibilities that must be carried out so that an
assessment of achievements needs to be carried out. b) identifying agreements
and disagreements and negotiations in BMS activities with stakeholders are
carried out through various formal and informal meetings, while negotiations
are the responsibility of the Patron and Advisor.� BMS has never conducted a specific evaluation
in the form of internal or external audits, and internal evaluations of
employees.
Respecting
Human Rights
���� As a business entity that manages its
resources, it is necessary to respect human rights in the form of a) Employee
Motivation in Social Responsibility, BMS has carried out social responsibility
through the involvement of time and energy of employees according to their
respective divisions to serve the needs of the community, support community
empowerment efforts because indirectly employees who work have contributed to
solving social problems at the village community level,� from the market management services of Nita
District, with various improvements and the provision of public facilities for
convenience. b) Maintaining the environment and culture, through the ikat
weaving business where Nita District has a distinctive weave in the form of
"Lipa Prenggi" and "Utan" Sarongs where in the future it will become a
"Sorenk Gallery" to promote ikat weaving in
Nita District. Nita's market management services are a form of attention to the
environment.
����� Based on the seven principles in
governance according to ISO 26000, BMS has implemented the principles of
accountability, transparency, ethical behavior, and respect for the interests
of stakeholders, adhered to the rule of law, and international norms of conduct,
and respected human rights. There are several aspects that need to be improved
consisting of motivating employees in social responsibility, promoting fair
opportunities, identifying agreements, disagreements, and negotiations to
document, and reviewing governance regularly. Improvements need to be made by
BMS to anticipate negative aspects that affect success including the inability
to compete with competitors due to various capacity constraints, mastery of
technology and the use of media and publications, adjustments to standard
operating procedures in managing a business so that services to the community
can be more effective and efficient, conducting internal and external audits to
increase the credibility and trust of outsiders in BMS to access greater
capital, pay attention to environmental, social and cultural aspects so as to
attract public sympathy and facilitate relationship building.
����� Based on the theory of sustainable
development includes the 5P element, namely People, Planet. Peace, Prosperity,
and Partnership, BMS has been implemented although for Planet, Peace and
prosperity need to be included in future activities through business
development strategies. The success of doing a successful business is also
supported by the role of stakeholders who according to theory make an active
contribution and benefit both parties and this is illustrated by the creating shared
value obtained from the role of stakeholders in the BMS business.
����� In line with the results of previous
research on the management of BUMDes in Ciherang village in 2021, emphasized that there needs to be
further synergy to produce SOPs as a guide in the Management of BUMDes, including utilizing e-commerce in marketing to
improve village community services. This can be done if the management of BUMDes has clear guidelines.
Access to Information and Technology
The ease for a person or the public to get
public information is one way to introduce and develop a business. Access to
information from the beneficiary side, Bumdes, and
Stakeholders are described as follows:
1. Beneficiaries get the convenience and benefit of the
information obtained from BMS.
2. BMS gets the convenience and benefit from the information
obtained from beneficiaries and stakeholders.
�����
In the field of technology.� BMS
only utilizes computerization for operational reports on activities,
transactions, and financial reports, while support marketing through
e-commerce, social media and publications has not been carried out.
����� Limited employee capabilities are an
obstacle because it has not been a priority for BMS for allocating and
recruiting employees who have the capacity to manage information and
technology. If this is not done, BMS will experience delays in developing business,
reaching consumers and partners so that profits and benefits are not maximized
which affects services to rural communities, especially in Nita District.
Based on
the theory of stakeholders, the effective way is to be effective with dynamism, knowledge,
intensive business activities, and interdependence in tasks and results. This
can happen if their access to information can be optimized.������ Connected with the theory of trust,
consumers will give confidence if they are confident in the product because
they get the right information. Meanwhile, marketing strategy theory states
that the relationship with appropriate environmental conditions is a factor in
marketing development.
Penelitian about the management of funds
carried out at BUMDesma in Susukan
District, Salatiga, Central Java shows that
transparency in BUMDesma has not run optimally due to
lack of publication so that the public can only access the BUMDesma
office. (Trantil and Utami,
2018)
From 2017 to 2022, BMS experienced various challenges. Internal challenges include cultural aspects, the ability to innovate and prepare resources through the
application and mastery of technology, collaboration, and employee competence. the
work culture that has been implemented for a long time is difficult to change
because you feel comfortable with these conditions.� The ability to innovate requires resources
and competencies that have not been a priority for BMS in five years of
business. This has led to a lack of collaboration with other parties.
The external challenge faced by
BMS is the force majeure in the form of the Covid-19 pandemic which affects
purchasing power and selling power. �Limited facilities
in Nita Subdistrict affect opportunities for cooperation with other parties.
The unlimited consumer needs that have not been met by BMS have resulted in people accessing other, faster services that
have the same services as BMS. Business competition with other businesses in
Nita District has become an obstacle and changes in regulations regarding the
increase in fuel have resulted in a decrease in public access to BMS business
services.
BMS's ability to face and manage challenges needs to be
done if it has the capacity to manage internal and external challenges. In the
theory of sustainable development 5P becomes important to be prioritized and
planned in the BMS business management strategy. This is in line with the
theory of stakeholders that the existence of awards and active contributions
from stakeholders can build collaboration and will help BMS answer challenges.
a. Business
Revitalization
����� BMS revitalizes as seen from the
dissemination of best practices to partners and stakeholders through various
meetings, deliberations, discussions, communication, and coordination. BMS
strives to maintain good relationships for business development efforts through
assistance in managing ex-PNPM revolving funds which remain constrained in
returns. However, BMS is able to manage Rp. 1,625,000,000 which is intended for
the people of Nita District
Problems
that need to be resolved through discussions, consultations, and persuasive approaches for example by
providing advice to consumers and beneficiaries through the provision of consulting clinics that currently utilize BMS offices. �Furthermore, some assistance
in revitalization efforts is to facilitate the
writing of proposals for group and individual loan
applications, group verification and survey of
prospective borrowers, conducting business guidance and assistance for the
UEP / SPP (women's group savings and loans) Revolving Fund group and Independent Business Credit (KUSUMA) as well as together Credit Handling Team carries out loan
arrears handling activities.
b. Quality
Improvement of Management and Organization
�����
Capacity and organizational strengthening have not been a priority for
BMS. This is because several factors include operational and management
standards that still adopt technical guidelines and guidelines for the
implementation of the former PNPM program, and there is no capacity-building
program organized by BMS and the government that is responsible for the
sustainability of BUMDes / BUMDesma.
The evaluation of employee performance has never been carried out to find out
the need for increased knowledge and abilities as stated in ART BUMDesma BMS article 10 paragraph 2.
c.
Strengthening Business Management
�����
This aspect is quite successfully carried out by BMS through business
development that increases every year from 2018 to 2022 as explained in the
Business Model of credit businesses, trade services, and market management
services. The responsibility of each employee is based on their respective
fields and the expansion of the marketing network for the Sikka Regency area in
Nita, Alok, Wairkoja, Talibura,
Lekebai, and several other markets. Although
marketing has not been maximized because it has not been able to prepare
quality products in large quantities on an ongoing basis, it is necessary to
carry out quality control in business management to build trust.
d.
Strengthening Cooperation and Partnerships
����
Internally, BUMDesma, which is trusted to
manage capital participation from 12 villages in Nita District, built a
collaboration with the Pintu Air Cooperative and Bank
BRI Maumere for additional modes. BMS also builds
partnerships with business entities in the fields of agriculture, weaving,
basic necessities, and building materials with partners in Maumere,
Ende, Makasar, and Surabaya as well as expeditions
for the delivery of goods.
�����
The governments in Nita Subdistrict and Sikka Regency provide support
through the use of land for operational buildings and help BMS cooperate with
villages located in the Nita District area as well as in other sub-districts
(Lela, Koting, Nelle, Mego,
and Magepanda) even outside the district that
allocates the procurement of agricultural needs and woven ikat materials.
����
However, BMS in the era of technology does not yet have the capacity to
utilize e-commerce to increase target consumers and sales. The lack of capital
for business development and additional financing of employees is a
consideration in this aspect.
e.
Asset and Capital Management
����������
As explained in the aspect of cooperation and partnership, BMS is able
to develop funding sources through capital participation and management of
ex-PNPM revolving funds from 12 villages. Access to capital from Bank BRI's
People's Business Credit (KUR) program as well as government asset management
for the construction of operational offices and warehouses as well as
sub-district market management is their trust in BMS
����
However, there are still challenges in asset and capital management
where loan applications use individual land certificate guarantees because
access to guarantor institutions and other sources of funding cannot be
done.��� Discussion and submission of
proposals to the government and other financial institutions require a long
process even though they have gone through the prescribed procedures.
f.
Improving the Quality of AdministrManagement,
Reporting, and Accountability
�����������
BMS has the ability to manage business entities, bookkeeping, and
reporting by adopting the system of the PNPM program. The reporting system is
carried out monthly and anyone can access the report.
�����
The absence of changes in the administrative and audit management system
is due to the fact that BMS's priorities in managing the business that are run
require a lot of time to revamp and find funding opportunities that are quite
difficult.
g. Strengthening
Profit and Benefits Management.
����������� Through credit and trade services
in agriculture and weaving, BMS contributes to the improvement of village
potential and economic value. The obstacles that are still faced are not having
competitiveness due to the productivity and continuity of quality products that
have not been able to answer market demand.
����� In accordance with the Articles of Association
Article 37 paragraph 2 concerning business results, the distribution includes
fertilization of business capital (40 %), original village income (25 %),
education and training (2 %), coaches/advisors (8 %), supervisors (3 %),
management operations (15 %), social funds (2 %), reserve funds (5 %). Of these
percentages that have not been done is the education and training section.
CONCLUSION
From the
results of the analysis, the conclusions drawn are as follows:
The
establishment of BMS in 2017 through a Joint Decree of 12 Village Heads of Nita
District has determined the types of businesses and beneficiaries through lending
money with interest, trading, and market management services with the community
as beneficiaries of 12 villages in Nita District, Sikka Regency
The
Business Model developed by BMS has implemented the elements contained in the Radyati-Rio Clockwise Business Model But it is still
necessary to make improvements in the evaluation of goals and targets,
Management of businesses and resources, and building relationships and
partnerships.
The
implementation of the seven principles of governance by BMS based on ISO 26000
has not been maximized, including accountability, transparency, ethical
behavior, compliance with legal regulations, international norms of behavior,
and respecting human rights so there is still no performance evaluation,
governance and audit so as to affect the trust of the public, partners, and
stakeholders to BMS
Access to
information by consumers and beneficiaries has not been a priority for BMS
because it is only limited to BMS offices. The use of technology has not been
programmed in the management of its business because it does not have skilled
workers due to limited operational costs.
The
challenges faced by BMS internally that BMS faces are resources including
capacity, innovation ability, and resource preparation competencies, while
external challenges include business partnerships, availability of technology,
unlimited needs of the community, and the Covid-19 pandemic and changes in
government regulations with an increased in fuel
which results in obstacles in business development and operational BMS.
The
development of business carried out by BMS through the revitalization of
coordination efforts with stakeholders, and the management of revolving funds
although not yet optimal. On the other hand, BMS does not yet have an employee
capacity strengthening program which results in the quality of administrative
management, reporting and accountability has not been maximized.
BMS
business services have contributed to realizing the vision and mission of the
Sikka Regency Government in fulfilling the basic rights of the community,
especially the right to work, the right to education, the rights of women and
children, and the right to population but have not contributed to the right to
health, the right to housing and a sustainable environment.
BMS supports
poverty alleviation efforts through the provision of facilities and
infrastructure for individuals and groups, improving the technical capabilities
of agricultural and weaving groups to increasing community capital access to
BMS so as to obtain better income.�
BMS through business activities contributes to the achievement of
the SDGs in indicator 1: no poverty, indicator 2: no hunger, and indicator 8 on
economic growth. In addition, it specifically answers the achievement of
village SDGs in indicator 8 on village economic growth and number 12 on village
consumption and production.� However, BMS
does not yet have disaggregated data on the number of users per business unit,
data on underserved communities, and increasing income of rural communities so
in quantity it cannot present information on the contribution of BMS in
achieving indicators.
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