Entrepreneurial Leadership towards Business Performance in Bumdes Majalengka Regency Indonesia

Abstract

BUMDes (Village-Owned Enterprises) is a business entity whose entire capital is owned by the village through direct participation derived from separated village assets in order to manage assets, services, and other businesses for the maximum welfare of the village community. The management principles are cooperative, emancipative, participative, transparent, accountable and sustainable. Majalengka is a district in West Java which has the privilege of the International Airport which is expected to be used by the community to sell local-based products to create jobs and increase welfare. Majalengka District consists of 330 villages and all of them already have BUMDes with various performance; but nine of them are inactive. The performance of BUMDes businesses also varies, starting with those that are already operating as expected, generating profits and contributing to PADes (Original Village Income), operating but have not yet made a profit, only buildings but have not yet determined the line of business. This research is intended to produce an entrepreneurial leadership model that affects the performance of BUMDes businesses in Majalengka District. The research method used in this research is descriptive qualitative, data collection was obtained through observation, in-depth interviews with village heads and BUMDes administrators, and documentation study utilizing secondary data. Determination of the sample based on snowball sampling. The development of BUMDes depends on the policies of the village head and the management entrepreneurial leadership to take advantage of the potential and available opportunities. The existing BUMDes sells variety of products that are needed and produced by the locals, providing staples for consumption, raw materials, fertilizers, and capital for business purposes. BUMDes Banjaran currently has the best performance, established in 2009 by having a grocery store business unit and a 3-kg-LPG (Liquid Petroleum Gas) agent. The shop, which was originally only a distributor, is now implementing a retail system without eliminating the distributor and membership/agent system for villagers and serves as an outlet that accommodates products of local entrepreneurs. BUMdes Banjaran also operates savings and loan business unit, by providing credit, not in the form of cash but in the form of goods needed for production. Other business units are services and rental of goods for community needs. Service and management use the concept of a grocery-store-priced , modern convenience store, and can be accessed by various social media. Its growth cannot be separated from the role of the leader to be diligent and always innovate by paying attention to external and internal factors. Length of business, experience, number of customers and suppliers are also factors that determine business performance. BUMDEs Banjaran can be used as a benchmark. Limited experience and selection of business fields are a challenge for BUMDes leaders to formulate the right strategy. A strategic management model can be developed by starting to determine the vision and mission in accordance with the agreement of the village government, analyzing external and internal factors. Entrepreneurial leadership includes dimensions of general entrepreneurial leader, explorer, miner, accelerator, and integrator behavior. This leadership behavior needs to be owned in order to make a positive contribution to business performance. Business performance includes business character, global vision. discipline, continuous learning, skills, internal management, supply chain, opportunities, strong business capital, good internal communication, information and adopted technologies, knowledge, customer satisfaction, relevant experiences, innovation, business ethics, and proper marketing strategy. BUMDes leaders need to have entrepreneurial leadership so that they always strive to achieve the best performance. The BUMDes communication forum of Majalengka District that has been established can be used as a means of learning, consultation, training, comparative studies, discussion, mediation, facilitation, innovation, and advocacy in the hope of synergy and contributing to economic development in rural areas. Communication among forum members is carried out both online and offline. The involvement of the millennial generation as BUMDes administrators allows the acceleration of the use of information technology for business. Information technology is not only used as a mean of communication, but is also used to obtain information about raw materials, production processes and services, products with better quality and favorable prices. The digitization process which includes peer-to-peer contact, knowledge transfer, training, and intervention can improve performance in the digital economy.