• Abdul Ghofar Brawijaya University
  • Edriana Pangestuti Brawijaya University
  • Putu Prima Wulandari Brawijaya University
  • Hendi Subandi Brawijaya University
  • Areta Widya Kusumadewi Brawijaya University



Purpose —  The purpose of this study is to strengthen the Governance of Village-Owned Business Entity (BUMDes) governance system by identifying and assuring intellectual capital, such as (1) brainstorming on human resource capacity improvement through the aspects of management, business plan, business process, finance and tax, information technology and marketing strategy; (2) BUMDes intellectual capital mapping as an attempt to improve the company’s value; (3) identifying and mapping strategies for community-based economy development; (4) creating a role model in strengthening BUMDes governance to encourage socio entrepreneurship (sociopreneurship).

Design/methodology/approach — This is a qualitative study and uses a case study approach, so the result is analytical and descriptive in written or verbal words from observed behavior. The population of this study is all BUMDes throughout Indonesia, and the object of the sample is BUMDes Cahaya Lestari, a village-owned entity located in Sumenep, East Java, Indonesia. The entity was selected as it is newly established and requires necessary development.

Findings — The findings of this study are that there is no good governance in the BUMDes. So that researchers provide a model of strengthening governance. This community service is limited to one BUMDes.

Practical implications — The practical implication is that the model for strengthening BUMDes governance can be applied by BUMDes in Indonesia.

Originality/value — This paper presents a case of BUMDes governance, i.e Indonesia. It is hoped that this case will help prove an example of implementing BUMDes governance in Indonesia with weak governance that may have an impact on the viability of BUMDes.


Keywords — BUMDes, Community-based economy, Good corporate governance, Intellectual capital, Sociopreneurship

Paper type — Case study



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How to Cite

Ghofar, A., Pangestuti, E., Wulandari, P. P., Subandi, H., & Kusumadewi, A. W. (2021). STRENGTHENING VILLAGE-OWNED BUSINESS ENTITY (BUMDes) GOVERNANCE IN ENCOURAGING SOCIOPRENEURSHIP. The International Journal of Accounting and Business Society, 29(3), 191–224.

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