This study aims to analyze human resource competencies and economic potential in developing businesses based on the utilization of clove leaf distillation industry residues in Tolitoli Regency. This research employed a qualitative descriptive-exploratory approach involving 10 informants in Malala, Sibaluton, and Lelean Nono Villages. Data were collected through in-depth interviews, observation, and documentation, and analyzed using the Miles, Huberman, and SaldaƱa interactive model. The findings indicate that community competencies in residue processing remain limited, particularly in technical knowledge, skills, and entrepreneurship. However, clove leaf residues have economic potential to be developed into value-added products, such as bokashi and compost. This business development offers opportunities to generate economic value and create new business opportunities for local communities. Therefore, improving human resource competencies, providing processing training, strengthening business institutions, and supporting technology, financing, and marketing are essential to establishing sustainable businesses
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