What does this research mean for the field?

Village-owned enterprises (BUMDes) that adopt an integrated model combining economic development with community empowerment achieve 85% higher sustainability rates than those focusing solely on economic objectives. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To evaluate implementation barriers and operational determinants influencing the sustainability of village-owned enterprises within rural development policy frameworks.

September 8, 2026Australian Journal of Public AdministrationOpen Access

Bridging policy and practice in rural development through village‐owned enterprise

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To evaluate implementation barriers and operational determinants influencing the sustainability of village-owned enterprises within rural development policy frameworks.
Evaluated operational performance and governance structures across approximately 51,000 village-owned enterprises (BUMDes) established in Indonesia since 2014.
Assessed implementation barriers, regulatory standardization, post-establishment technical assistance models, and multidimensional success metrics spanning economic, social, and environmental outcomes.
Only one-third of the 51,000 registered village-owned enterprises remain actively operating, with standardized regulations generating operational barriers in 62% of cases due to disregard for local contexts.
Enterprises implementing an integrated model that pairs economic objectives with community empowerment strategies achieve an 85% higher sustainability rate than those pursuing economic goals alone.
Enterprises receiving continuous technical guidance consistently sustain higher operational viability and performance than those receiving only initial, one-time support.

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Implication

Policy evaluation demonstrates integrated empowerment models improve rural enterprise sustainability by 85%, highlighting the necessity of flexible participatory governance frameworks.

Cite This Study

Muttaqin et al. (2026) studied this question.

synapsesocial.com/papers/6a9fd77658e84d0ff5b4634a https://doi.org/10.1111/1467-8500.70040

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Implication

Policy evaluation demonstrates integrated empowerment models improve rural enterprise sustainability by 85%, highlighting the necessity of flexible participatory governance frameworks.

Bridging policy and practice in rural development through village‐owned enterprise

Key Points

Discussion

Implication

Cite This Study

Bridging policy and practice in rural development through village‐owned enterprise

Key Points

Discussion

Implication

Cite This Study

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