According to Regulation of Mendes-PDTT No. 4 of 2015, a Village-Owned Business Entity is a business entity whose entire or most of its capital is owned by a Village through direct participation derived from Village wealth that is separated to manage assets, services, and other businesses for the maximum welfare of the Village community.

In order for BUMDes to contribute to increasing village income, it is necessary to set up a good management system. This statement was conveyed by Dr. Dwi Prasetyani, SE, M.Si., Plt. Vice Dean for Research and Student Affairs, Faculty of Economics and Business (FEB), Universitas Sebelas Maret (UNS), as one of the speakers at the Village Empowerment and Village-Owned Enterprises (BUMDes) Workshop, Tuesday 13 June 2023, organized by Puslitdesbangda LPPM UNS.

In front of 250 BUMDes from Klaten, Karanganyar, Boyolali, and Sukoharjo regions, Dr. Dwi explains the Management and Marketing strategy for BUMDes Products. She said that, in its management, BUMDes must have capabilities in business management including financial management, marketing management, production management, distribution management, and HR management.

Financial management starts from budgeting to reporting activities, while Marketing Management, to increase sales in the market. As for Production Management, the core of the business process starts from raw materials to finished goods. Distribution Management is very important for the smooth marketing process, while HR Management has the most crucial role, where no system succeeds in the absence of quality human resources.

According to Dr. Dwi, the marketing concept depends on the character of the product. “In terms of marketing, we have to know the business model of the product. For example, in rural tourism, we talk about several things, whether culinary service is available or not, what kind of crafts we can create, what kind of gifts can be bought by those who will enjoy the products, what involvement will be enjoyed by those who will be our target consumers, how is the ecosystem and so on,” she explained.

Further, she states that, in principle, whatever business or enterprise we choose, we should have a business model and roadmap. These two will help us to plan on what to do in this year, or what to achieve in the next 2 years.

“Not only operational, there is a destination, there is a business concept. This can show that, yes, I have achieved my objective because there are indicators of success that have been set since the beginning. Try comparative studies to advanced BUMDes, they must have a roadmap,” she said.

Furthermore, there are 3 strategies to build a business model, initiation and positioning, branding development, and coaching and monitoring.