The factors affecting the formation of village-owned enterprises (Badan Usaha Milik Desa) in Indonesia / Nugraheni Rintasari and Panji Satria Romadon

The village-owned Enterprises or in Indonesia, it has mentioned Badan Usaha Milik Desa is an entity which the village has to improve original village income. Since 2015, Indonesia's government has given the Village Fund. It is to develop the local economy to stimulate their financial independence. One way to reach it is by building Village-owned Enterprises. Although approximately 74 thousand villages have received Village Fund more or less for three years, there have not 50% yet which be able to build Village-owned enterprises. This research aims to get knowing factors affecting the formation of Village-Owned Enterprises. This research use factors affecting interest in entrepreneurship because build Village-Owned Enterprises is like building a business for an entrepreneur. Self-efficacy, locus of control, entrepreneur character, and family environment have possibility to affecting establishment village-Owned Enterprises. Questioner for 62 respondents to get the data. Respondents are village governments in 8 villages include in Tempel Sub-district, Sleman District. Hypothesis testing by using multiple regression analysis. The result shows that the self-efficacy and family environment of the village government affected the establishment of village-owned enterprises, while locus of control and entrepreneur character is not. This research also shows that the rate of adjusted r square 0,267 or 26,7%. It means 73,3% of other factors affected formulation village-owned enterprises. This research can be considered to the government for improving village government capacity, especially how to make creative and skill to build village-owned enterprises.