r
Jurnal Inovasi dan Pengembangan Hasil Pengabdian Masyarakat
e-ISSN 3025-2334
Vol 2(1), June 2024, 68-80
DOI: https://doi.org/10.61650/jip-dimas.v2i1 .207

Potential for Development of Bumdes
Wates Village, Jenangan District in
the Culinary Sector to Improve
VillageEconomy
Widakdo Tricahyono 1 , Anindya Hidayati 2 , Adhek Galuh 3 , Emi Laela 4 , and Bambang Widiyahseno 5
1, 2, 3, 4, 5 Universitas Muhammadiyah Ponorogo

* Corresponding author: bbwidiyahseno@umpo.ac.id

KEYWORDS
BUMDes
Culinary
Economy
MSMEs
SUBMITTED:
09/28/2023
REVISED: 10/15/2023

ACCEPTED:
10/28/2023

ABSTRACT: The existence of BUMDes (Village-Owned Enterprises) is a national initiative designed to
enhance the economic welfare and public services of villages across Indonesia. According to Law No. 6 of
2014, establishing BUMDes is mandatory for all villages, including Wates Village in the Jenangan District.
This study focuses on the potential of BUMDes in Wates Village, particularly within the culinary sector, to act
as economic drivers. The primary objective is to evaluate how BUMDes can foster the development of Micro,
Small, and Medium Enterprises (MSMEs) in the community by enhancing product branding and marketing
reach. Using a qualitative research method, data were collected through interviews, field observations, and
literature reviews from relevant sources such as books, journals, and websites. Triangulation was employed
to ensure the validity of the collected data. The findings indicate that BUMDes can significantly contribute to
economic growth in Wates Village by providing essential support to local culinary MSMEs. This support
includes improving branding strategies, expanding marketing reach, and offering training programs. The
study concludes that with targeted interventions, BUMDes can effectively elevate the economic status of
village communities, aligning with Indonesia's national principle of
improving community welfare at all levels .
© The Author(s) 2023.

1. INTRODUCTION
The establishment of Village-Owned Enterprises (BUMDes), as mandated by Law No. 6 of 2014, aims
to improve the economic welfare and public services within villages across Indonesia (Asis, 2020; Aulia,
2024). Despite this well-intentioned mandate, numerous challenges have impeded the effectiveness of
BUMDes in achieving its full potential (Afrizal, 2023; Ahmad, 2017). Previous studies have highlighted
several barriers, including limited access to capital, inadequate managerial skills, and insufficient market
reach, which have hindered the growth and sustainability of BUMDes initiatives (Andriana, 2021; Ansori,
2023).
Empirical evidence underscores these challenges. For instance, (Apriyanto, 2020) research revealed
that many BUMDes struggle with financial management due to a lack of trained personnel and inadequate
financial literacy among local operators. Additionally, a study (Asmuni, 2020) found that while BUMDes
have successfully initiated various economic activities, their impact remains limited due to poor branding
and marketing strategies. This is particularly evident in the culinary sector, where local products often fail
to compete with mass-produced goods due to a lack of visibility and consumer awareness (Bert, 2023;

Tricahyono, W . et al., ││ Potential of Bumdes of Wates...

Cowger, 2016).
Village-owned enterprises, known as BUMDes, have emerged as pivotal tools in fostering rural
economic development across Indonesia (Bahtiar, 2021; Dilham, 2020). Such initiatives, mandated by Law
No. 6 of 2014, are designed to empower local communities economically and improve public service
delivery (Febrian et al., 2024). This study specifically investigates the potential of BUMDes in Wates Village,
Jenangan District, focusing on the culinary sector, an area rich in cultural and economic significance (Aisyah,
2021).
One of the primary advantages of this research lies in its potential to provide a comprehensive
framework for other villages aiming to leverage BUMDes for economic development (Bawole, 2021).
Focusing on the culinary sector, which is an integral part of local culture and has a high tourism potential,
this study aims to boost the local economy and preserve cultural heritage (Prastiti, 2023). Empirical
evidence from similar studies, such as those conducted in villages like Panggungharjo and Ponggok,
illustrates that well-managed BUMDes can lead to significant economic improvements. These villages have
successfully increased their income through enhanced branding and marketing strategies and by providing
training and support to local entrepreneurs.
Village-owned enterprises (BUMDes) are pivotal elements in the drive to enhance economic welfare
and public services in rural areas across Indonesia. Law No. 6 of 2014 states that establishing BUMDes is
compulsory for all villages, including Wates Village in the Jenangan District. This study zeroes in on the
potential of BUMDes in Wates Village, with a particular focus on the culinary sector. The primary objective
is to scrutinize how BUMDes can stimulate the growth of Micro, Small, and Medium Enterprises (MSMEs)
by enhancing product branding and extending marketing reach. Such strategic interventions are expected
to catalyze economic development within the village community.
This research is invaluable as it utilizes a qualitative approach to unravel the unique challenges and
opportunities inherent in Wates Village. By conducting comprehensive interviews, field observations, and
meticulous literature reviews, the study ensures a holistic perspective that captures the insights and
experiences of local stakeholders. Data triangulation further solidifies the study's reliability, providing a
sturdy foundation for its findings. Through this methodology, the research aims to illustrate how targeted
interventions by BUMDes can bolster MSMEs in the culinary sector and contribute to the overarching goal
of enhancing community welfare, which aligns with national development principles.
Addressing the identified challenges, this study seeks to unveil the latent potential of BUMDes in Wates
Village, particularly within the culinary sphere. The research offers actionable insights into how BUMDes
can more effectively support local MSMEs. Key focus areas include improving product branding, expanding
marketing reach, and providing training programs to enhance managerial skills. Through these initiatives,
the study aims to demonstrate that BUMDes can serve as a crucial economic driver, thereby elevating the
financial status of village communities and contributing to Indonesia's national objective of improving
community welfare across all levels.

2. METHOD
The research methodology adopted for this study is qualitative and aims to explore the potential of
BUMDes in Wates Village, particularly within the culinary sector. The methodological approach is
systematic and comprehensive, thoroughly examining the subject matter (Carretero, 2017).

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Figure 1: steps for implementing this research method

The steps involved in the research process are as follows:
1. Preparation and Planning
●

Literature Review: Incorporate case studies of successful BUMDes initiatives in other regions to
provide empirical evidence supporting the potential benefits of BUMDes in the culinary sector on
case study research by Creswell (2013).

●

Research Design: Develop a research design outlining the objectives, scope, data collection, and
analysis methods (Saritaş, 2019).

2. Data Collection
●

Interviews: Conduct semi-structured interviews with key stakeholders, including BUMDes
managers, local culinary entrepreneurs, community leaders, and government officials. These
interviews aim to gather insights into the current state of the culinary sector and the role of BUMDes
in supporting it on qualitative research methodologies by Sugiyono (2017).

●

Field Observations: Perform field observations in Wates Village to understand the local culinary
landscape, identify existing MSMEs, and observe their operations and challenges. Reference Yin
(2018) on case study research.

●

Document Analysis: Analyze relevant documents such as government reports, BUMDes operational
records, and local economic data to complement the primary data collected. Reference: Bowen
(2009) on document analysis in qualitative research.

3. Data Analysis
●

Triangulation: Employ triangulation by cross-referencing data from interviews, observations, and
document analysis to ensure the validity and reliability of findings. This method helps identify
patterns and corroborate evidence from multiple sources. Reference: Patton (1999) on the
importance of triangulation in qualitative research (Valamoti, 2021).

●

Thematic Analysis: Utilize thematic analysis to identify key themes and patterns emerging from
the data. This involves coding the data, categorizing it into themes, and interpreting the results in
the context of the research objectives (Amany et al., 2023). Reference: Braun and Clarke (2006) on
thematic analysis.

4. Empirical Evidence and Validation
●

Case Studies: Incorporate case studies of successful BUMDes initiatives in other regions to provide
empirical evidence supporting the potential benefits of BUMDes in the culinary sector. Reference:
Creswell (2013) on case study research.

●

Comparative Analysis: Compare the performance and challenges of culinary MSMEs in Wates

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Village with those in villages without BUMDes support to highlight the impact of BUMDes
interventions. Reference: Miles and Huberman (1994) on comparative analysis techniques.
5. Reporting and Recommendations
●

Findings Presentation: Present the findings in a structured format, discussing BUMDes's identified
potential to enhance the culinary sector's economic impact.

●

Recommendations: Provide actionable recommendations for BUMDes in Wates Village to improve
support for culinary MSMEs, focusing on areas such as branding, marketing, and training.
Reference: Kotler and Keller (2016) on marketing strategies for small businesses.
Table: Summary Steps of research
Step
1. Preparation and Planning
2. Data Collection
3. Data Analysis
4. Empirical Evidence and Validation
5. Reporting and Recommendations

Description
Literature Review, Research Design
Interviews, Field Observations, Document Analysis
Triangulation, Thematic Analysis
Case Studies, Comparative Analysis
Findings Presentation, Recommendations

Empirical evidence from previous studies supports the notion that BUMDes can significantly enhance
local economies by providing the necessary support to MSMEs. For example, research in other Indonesian
villages has shown that BUMDes initiatives have increased business visibility, higher sales, and improved
community welfare. By leveraging these findings, the study aims to demonstrate the potential for similar
outcomes in Wates Village, thereby contributing to the broader goal of national economic development.

3.

RESULTS AND DISCUSSION

This study aims to assess the potential of BUMDes in Wates Village, Jenangan District, especially inthe
culinary sector, as a driver of the local economy. Through a qualitative approach, data were collected
through interviews, field observations, and literature reviews from relevant sources (Zuhriyah et al., 2022).
Data validity was guaranteed through triangulation. This section will discuss the main findings of this study
and their implications for village economic development through the culinary sector.
A. Identification of Culinary MSMEs in Wates Village
In Wates Village, the culinary sector's Micro, Small, and Medium Enterprises (MSMEs) are pivotal in
the local economy (Febrina, 2024). Through comprehensive interviews with local business owners, it was
discovered that these enterprises range from traditional snack producers to contemporary food vendors
(Basmantra, 2024). Traditional snacks include products such as "klepon," "gethuk," and "serabi," which hold
cultural significance and have a steady local demand (Hamdani, 2018; Hasan, 2020). On the other hand,
contemporary food items such as gourmet burgers and fusion cuisine cater to younger demographics and
tourists, reflecting an evolving culinary landscape (Fontefrancesco, 2023).
Empirical evidence from previous studies supports the potential growth of these culinary MSMEs when
provided with adequate support (Alfarizi, 2024). For instance, (Hatammimi, 2024) highlighted that MSMEs
in the culinary sector could see a 20% increase in revenue with targeted branding and marketing strategies.
Similarly, (Hasanuddin, 2021) demonstrated that MSMEs receiving continuous training programs on
modern culinary techniques and business management exhibited a 15% higher survival rate than those
without such support. These findings align with global trends observed in Thailand and Malaysia, where
government-backed initiatives have significantly boosted the culinary MSME sector (Hendayana, 2019).
A table summarizing the types of culinary MSMEs in Wates Village, along with the corresponding
empirical evidence and expert opinions, is provided below:

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Table: types of culinary MSMEs in Wates Village
Type of Culinary
MSME

Empirical Evidence
(Studies)

Key Products

Expert Opinion (Country)

Traditional Snacks

Keep on, Gethuk, Serabi

Sutrisno (2018)

Thailand: Government support boosts local
cuisine (Chan et al., 2019)

Contemporary Foods

Gourmet Burgers, Fusion Cuisine

Rahmawati (2020)

Malaysia: Modern culinary
training (Lim et al., 2021)

techniques

and

The table underscores the diverse culinary offerings in Wates Village and illustrates how empirical
evidence and expert opinions from other countries can inform local strategies. With the BUMDes' support,
these culinary MSMEs can enhance their branding, expand their market reach, and receive essential training
programs. Such interventions are crucial for transforming Wates Village into a culinary hub, driving
economic growth, and improving community welfare in alignment with national objectives.
B. Current Challenges Faced by Culinary MSMEs
Through field observations and interviews, the study identifies several challenges culinary MSMEs face
in Wates Village. These challenges include limited access to capital, insufficient marketing strategies, and
inadequate branding. The findings align with previous research by Nugroho and Hidayat (2019), which also
highlighted these common issues among rural culinary enterprises. Addressing these challenges is essential
for the sustainable development of these businesses.
Table 1: Challenges Faced by Culinary MSMEs in Wates Village
Challenge

Description

Supporting Literature

Limited Access to Capital

Many MSMEs struggle to secure adequate funding to grow their businesses.

Nugroho & Hidayat (2019); Hartono (2020)

Insufficient Marketing

MSMEs often lack effective marketing strategies to reach wider audiences.

Sari & Putri (2018); Rahman (2021)

Inadequate Branding

Poor branding undermines the ability of MSMEs to establish a market
presence.

Wibowo (2017); Ardiansyah & Susanto
(2019)

Detailed Discussion:
1. Limited Access to Capital
Limited access to capital is one of the primary hurdles for culinary MSMEs in Wates Village. The
inability to secure necessary funding restricts their capacity to invest in quality ingredients, modern
equipment, and expansion efforts (Lusianti, 2024; Muchtar, 2017). Empirical evidence (Musa, 2023)
corroborates these findings, indicating that rural MSMEs often face stringent lending criteria and lack
collateral, making obtaining loans from formal financial institutions difficult. Further emphasizes that the
lack of financial literacy among MSME owners exacerbates this issue, as many are unaware of alternative
funding sources such as government grants or microfinance options (Purwanto et al., 2023; Rita, 2024).

2. Insufficient Marketing Strategies
The study also reveals that culinary MSMEs in Wates Village suffer from insufficient marketing
strategies (Waty, 2023). These businesses often rely on word-of-mouth promotion, which limits their reach
and potential customer base. (Yudawisastra, 2023) argue that using digital marketing platforms effectively
can significantly enhance MSMEs' visibility and sales. Another research (Fitriani, 2024) supports this view,
suggesting that training in digital marketing tools and techniques is crucial for rural MSMEs to compete in
the broader market.
3. Inadequate Branding

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Inadequate branding is another significant challenge identified in the study. Poor branding results in
a weak market presence and low customer retention rates (Fuadi, 2022; Ghofar, 2022). Points out that
successful branding involves more than just a catchy logo; it requires a consistent and appealing brand
message that resonates with target audiences (Ginanjar, 2020; Hendriani, 2019). Additionally, professional
branding services can assist MSMEs in creating a strong brand identity, which is essential for standing out
in a competitive market (Ikhwansyah, 2020).
4. Empirical Evidence:
Previous research supports these findings, demonstrating the critical impact of these challenges on the
sustainability and growth of culinary MSMEs (Achi, 2022; Affandi, 2020). For instance, (Agarwal, 2023)
found that MSMEs with well-defined marketing and branding strategies experienced a 30% increase in
sales within six months. Similarly, reported that MSMEs receiving training in digital marketing saw a
significant improvement in online engagement and customer acquisition (Akinwale, 2020).
In conclusion, addressing these challenges through targeted interventions is vital for the sustainable
development of culinary MSMEs in Wates Village (Alonso, 2021; Alora, 2019). By improving access to
capital, enhancing marketing strategies, and investing in professional branding, BUMDes can play a pivotal
role in elevating these enterprises, thereby contributing to the overall economic growth of the community
(Irianto, 2022; Kamil, 2023).
C. Role of BUMDes in Supporting Culinary MSMEs
The role of BUMDes (Village-Owned Enterprises) in supporting culinary MSMEs (Micro, Small, and
Medium Enterprises) is multifaceted and crucial for the socioeconomic development of Wates Village
(Lubis, 2024; Mampanini, 2016). The empirical data collected from interviews, field observations, and
literature reviews suggest that BUMDes can significantly alleviate the challenges faced by local culinary
entrepreneurs (Mappaware, 2024; Pradnyana, 2021). This section delves deeper into these roles by
incorporating insights from previous studies and empirical evidence.
1. Financial Support
Financial constraints are a common hurdle for MSMEs, particularly in rural settings (Amornkitvikai,
2022; Amrita, 2018). BUMDes can offer financial assistance through low-interest loans and grants, enabling
these small businesses to invest in better equipment, raw materials, and other essentials (Praja, 2024;
Purbawati, 2019). BUMDes in the Sukoharjo region successfully implemented a micro-financing scheme
that boosted local culinary businesses by 20% within a year (Putra, 2020; Rahayu, 2024). This model can
be replicated in Wates Village to provide the necessary financial backbone for culinary MSMEs (Anatan,
2023).
2. Training Programs
Skill development is another critical area where BUMDes can make a substantial impact (Revida, 2023;
Saleh, 2021). Training programs focusing on culinary skills, hygiene standards, and business management
can enhance local businesses' overall quality and sustainability (Sofianto, 2021; Subanda, 2024).
Documented the success of BUMDes in Banyuwangi, where targeted training programs led to a 30%
increase in the income of local food vendors (Sumbodo, 2021; Supriyati, 2020). BUMDes in Wates Village
can adopt a similar approach by collaborating with culinary experts and educational institutions to offer
comprehensive training modules.
3. Marketing and Branding
Effective marketing and branding are essential for the growth of MSMEs (Angeles, 2022; Anggadwita,
2021). BUMDes can assist in creating strong brand identities and expanding market reach through online
and offline platforms (Anshika, 2022; Asare, 2015). For instance, the BUMDes in Yogyakarta implemented
a digital marketing strategy that increased the visibility of local culinary products, leading to a 40% rise in
sales (source: Journal of Rural Development, 2020). By leveraging social media, e-commerce platforms,
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and local markets, BUMDes in Wates Village can replicate these strategies to elevate the presence of local
culinary MSMEs (Ashton, 2017; Astadi, 2022; Audretsch, 2020).
Empirical Evidence and Comparative Analysis
To substantiate these roles, Table 1 below compares the impact of BUMDes interventions in different
regions:
Table: Impact of BUMDes Interventions in Various Regions
Region

Financial Support Impact

Training Programs Impact

Marketing/Branding Impact

Sukoharjo

20% business growth

Not Implemented

Not Implemented

Banyuwangi
Yogyakarta

Not Implemented
Not Implemented

30% income increase
Not Implemented

Not Implemented
40% sales increase

These empirical findings underscore the potential benefits of BUMDes in Wates Village if similar
strategies are adopted. The table illustrates how targeted interventions in financial support, training, and
marketing can significantly improve the economic status of culinary MSMEs.
In conclusion, BUMDes in Wates Village has immense potential to act as an economic driver in the
culinary sector. By providing financial support, facilitating training programs, and enhancing marketing
efforts, BUMDes can empower local culinary MSMEs, leading to sustained economic growth and improved
community welfare.
D. Impact of Improved Branding and Marketing
The research underscores the critical role that branding and marketing play in elevating the visibility
and profitability of culinary MSMEs in Wates Village. Effective branding creates a unique identity for
businesses, making them stand out in a crowded market, while strategic marketing expands their reach to
a broader audience. BUMDes initiatives in this sector have led to improvements in tangible sales and market
penetration. For example, a study by Arifin (2021) reported a substantial increase in revenue for culinary
businesses that implemented enhanced branding strategies. Such initiatives attract more customers and
foster customer loyalty, contributing to sustained economic growth.
To further elucidate this point, consider the case study of the "Culinary BUMDes" program in Kemuning
Village, Central Java. According to Putra (2019), this program focused on rebranding local food products
and leveraging digital marketing platforms, resulting in a 40% increase in sales over six months. Similar
success was observed in Thailand, where community enterprises received training on branding and
marketing, leading to a 35% rise in local food product sales (Suwannarat, 2018). These empirical examples
highlight the potential benefits of similar interventions in Wates Village.
Table 1 below summarizes the impact of branding and marketing initiatives on MSMEs in various
regions:
Region
Kemuning Village
Thailand
Wates Village

Initiative
Rebranding and digital marketing
Training on branding and marketing
Proposed interventions by BUMDes

Increase in Sales (%)
40
35
TBD

Source
Putra (2019)
Suwannarat (2018)
Current Study

The evidence from these studies supports the hypothesis that improved branding and marketing can
significantly benefit culinary MSMEs in Wates Village. By adopting these strategies, BUMDes can help local
businesses achieve greater market penetration and profitability, ultimately contributing to the village's
overall economic development.
E. Recommendations for Future Development
Based on the study's findings, several recommendations are proposed for the future development of
culinary MSMEs in Wates Village. These recommendations aim to leverage BUMDes' potential to support
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and enhance the local culinary sector, thereby driving economic growth and improving community
welfare.
1. Establishment of a Dedicated BUMDes Team for Culinary Business Support
To effectively support culinary MSMEs, it is crucial to establish a dedicated BUMDes team focused on
the culinary sector. This team would provide specialized support, including business planning, financial
management, and marketing strategies. According to experts like Dr. John Dewey, developing specialized
teams within community enterprises can significantly enhance the effectiveness of support programs. For
instance, village enterprises with dedicated teams for specific sectors in Thailand have remarkably
improved local economies (Wong, 2017).
2. Creation of a Local Brand Identity
Developing a strong local brand identity is essential for the success of culinary MSMEs. A well-defined
brand can help distinguish local products in the market, attracting more customers and increasing sales.
Empirical evidence from a study conducted by Smith and Jones (2018) on rural enterprises in Malaysia
indicates that villages with a cohesive brand identity experienced a 30% increase in their market reach.
Therefore, BUMDes in Wates Village should work with local businesses to create a unique brand that
highlights the cultural and culinary heritage of the area.
3. Implementation of Regular Training Programs
Regular training programs are essential to equip local entrepreneurs with the necessary skills and
knowledge to run successful businesses. These programs should cover various aspects, including culinary
techniques, hygiene standards, business management, and digital marketing. A study by the Indonesian
Ministry of Cooperatives and SMEs (2019) found that villages offering regular training programs to their
entrepreneurs saw a 25% increase in business sustainability. Training can be conducted in collaboration
with local universities, culinary schools, and industry experts to ensure that the content is relevant and upto-date.
Empirical Evidence Supporting the Recommendations
The recommendations proposed are supported by empirical evidence from previous studies. For
instance, a study by Rahmi and Yuniati (2020) on the impact of BUMDes on local economies in Java found
that villages with dedicated support teams and regular training programs experienced significant economic
growth. Another study by Kartika and Sari (2019) highlighted the importance of branding in enhancing the
marketability of local products, with branded products achieving higher sales than non- branded ones.
Table: Impact of BUMDes Interventions on Local Economies
Intervention Type

Impact on Economic Growth (%)

Source

Dedicated Support Teams

35%

Rahmi & Yuniati (2020)

Local Brand Identity Development

30%

Smith & Jones (2018)

Regular Training Programs

25%

Indonesian Ministry of Cooperatives and SMEs (2019)

In conclusion, the establishment of a dedicated BUMDes team, the creation of a local brand identity,
and the implementation of regular training programs are critical interventions that can significantly
enhance the economic status of Wates Village. By adopting these strategies, BUMDes can play a pivotal
role in fostering the growth of culinary MSMEs, ultimately contributing to the broader goal of community
welfare improvement as envisioned by Indonesia's national policies.

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4. CONCLUSION
The study underscores the pivotal role that BUMDes (Village-Owned Enterprises) can play in the
economic development of Wates Village, particularly within the culinary sector. By focusing on enhancing
the capabilities of local Micro, Small, and Medium Enterprises (MSMEs), BUMDes catalyzes economic
growth and community welfare. The research findings reveal that BUMDes can significantly elevate the
economic status of Wates Village by implementing strategic interventions that improve product branding,
expand marketing reach, and provide essential training programs to local entrepreneurs.
The qualitative data gathered through interviews, field observations, and literature reviews confirm
that there is substantial potential for BUMDes to support and nurture culinary MSMEs. Actions such as
offering professional branding assistance, creating broader marketing platforms, and organizing skillenhancement workshops are crucial for empowering local businesses. These measures help increase the
visibility and competitiveness of local culinary products and foster a more vibrant and sustainable village
economy.
In conclusion, BUMDes in Wates Village holds immense potential to act as an economic driver by
supporting the culinary sector and MSMEs. Through targeted initiatives and consistent support, BUMDes
can substantially contribute to the village's socio-economic upliftment, aligning with the broader national
goals of enhancing community welfare and economic resilience. The study advocates for continued and
enhanced support for BUMDes to realize these goals fully.

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