ENHANCING RURAL ECONOMIC DEVELOPMENT THROUGH COLLABORATION BETWEEN MSMES AND VILLAGE-OWNED ENTERPRISES: EVIDENCE FROM SUNYALANGU VILLAGE, BANYUMAS, INDONESIA

Abstract

Micro, Small, and Medium Enterprises (MSMEs) and Village-Owned Enterprises (BUMDes) play a crucial role in promoting inclusive rural economic development in Indonesia. However, empirical studies on how their cooperation supports sustainable local growth remain limited. This study aims to analyze the impacts of collaboration between MSMEs and BUMDes in Sunyalangu Village, Banyumas Regency, with a focus on economic empowerment, institutional strengthening, and community participation. Using a case study approach, data were collected through interviews, focus group discussions, and secondary sources involving BUMDes managers, MSME actors, and village officials. The findings reveal that collaboration has facilitated market access for local products, enhanced the financial capacity of MSMEs, and created new job opportunities. At the same time, BUMDes has strengthened its institutional role as a hub for village economic development. Nevertheless, challenges such as limited capital, managerial capacity, and access to broader markets remain significant barriers. This study highlights that effective collaboration between MSMEs and BUMDes contributes to achieving Sustainable Development Goals (SDGs), particularly Goal 8 (Decent Work and Economic Growth) and Goal 11 (Sustainable Cities and Communities). Policy support, capacity building, and digital innovation are recommended to enhance the sustainability of such collaborations.