Village Fund allocations from the State Budget (APBN) aim to foster village economic autonomy through Village-Owned Enterprises (BUMDes). This study analyzes the effectiveness of Village Fund management through BUMDes and its impact on community economic welfare in Lawe Sumur Village, Babul Rahmah District. Employing a descriptive qualitative approach, data were gathered via observation, in-depth interviews with 15 purposive informants, and documentation, analyzed using the Miles and Huberman interactive model. The findings indicate that BUMDes management effectiveness is moderately effective (achieving approximately 75%), primarily sustained by the serving unit (refill drinking water depot) and the banking unit (microcredit savings and loans). BUMDes measurably contributes to Village Original Income (PADes), creates local jobs, and facilitates micro-enterprise capital. Nevertheless, economic welfare impacts remain unevenly distributed across the broader community due to limited socialization, capital constraints, and the dormancy of four planned brokering and trading units. Strengthening managerial capacity, governance transparency, and business diversification based on local potential are essential to ensure that BUMDes benefits are realized inclusively and sustainably.
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