The Impact Of Capital Investment And Managerial Competency On Village Income Enhancement: A Case Study Of Bumkams In Rawa Jitu Timur District, Tulang Bawang Regency

Abstract

This study examines the influence of capital investment and managerial competency on the enhancement of village income, specifically focusing on Village-Owned Enterprises (BUMKAMs) in the Rawa Jitu Timur District of Tulang Bawang Regency. Despite the establishment of 147 BUMKAMs by 2016, and the formation of 8 BUMKAMs in the Rawa Jitu Timur District, only a limited number have contributed significantly to village revenue. The research identifies a gap where the formation of BUMKAMs has been more of a formal requirement rather than a practical solution to village needs, resulting in minimal capital investment and ineffective management. This study employs a descriptive-verificative approach to evaluate how capital investment and managerial competency impact village income. Data analysis reveals that while capital investment has a positive but non significant effect on village income, managerial competency significantly and positively influences income enhancement. The findings suggest that improving managerial skills has a more pronounced effect on increasing village revenue than capital investment alone. The study underscores the importance of enhancing managerial competency to maximize the benefits of capital investment for village income. Future research should explore strategies to optimize both capital investment and managerial training to further improve village economic outcomes.