This study examines the operational management and socio-economic impacts of Badan Usaha Milik Desa (BUMDes) Muji Berkah in Margorejo Village, Kendal Regency. The research aims to identify key success factors of BUMDes innovation and analyze its social-economic contributions to community welfare. Using qualitative case study approach through in-depth interviews with BUMDes administrators, village officials, and community members, complemented by participatory observation and document analysis conducted during July-August 2025. The study reveals that BUMDes Muji Berkah successfully operates seven active business units including waste management, livestock, internet services, water supply, fish farming, and rice milling. Success factors include transformational leadership, adaptive capacity, and structural support from village government through formal legality and initial capital. The socio-economic impacts encompass job creation for 61 workers (permanent and seasonal), women's empowerment through PKK groups involvement, and strengthening community social cohesion. Despite operational success, challenges remain in financial documentation and seasonal business vulnerability. The study concludes that BUMDes success depends more on institutional governance and leadership rather than natural resource availability, providing a replicable model for community-based rural development.
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