This research aimed to analyze the potential of local communities in empowering the local economy through Village-Owned Enterprises (BUMDes) and to identify the factors that influenced the success and sustainability of these initiatives. The research was conducted in six sub-districts in Sidoarjo Regency using a descriptive qualitative approach. The analysis showed that villages ready to establish (BUMDes) had several key characteristics, including abundant natural resources, a productive-age population exceeding 50%, strong institutional structures, adequate infrastructure, high awareness of business licensing, and sufficient market value for their products. Various factors, including the strategic role of village heads, community enthusiasm, asset management, inter-village cooperation, and funding mechanisms, influenced the success of (BUMDes). Furthermore, institutional aspects, governance, and initiatives such as waste management and food security contributed to the sustainability and economic impact of (BUMDes) in improving the welfare of rural communities. These insights were relevant to Sidoarjo Regency and could be applied to other regions in Indonesia facing similar challenges. Keywords: Economic empowerment, (BUMDes), Sidoarjo Regency, community welfare, local resources
Kusuma et al. (2025) studied this question.