Strategic Development of Business Units Based on Local Potential: A Case Study of BUMDes Wukirraya, Bantul

Abstract

This study explores the business development strategies of BUMDes Wukirraya, a Village-Owned Enterprise located in Wukirsari Village, Imogiri Sub-district, Bantul Regency. As a reactivated entity since 2022, BUMDes Wukirraya operates five business units—coffee shop, gas depot, catering, tourism, and BUMDesmart—designed to support the local economy through diversified income streams. The research aims to investigate how this BUMDes manages its multi-unit structure, addresses internal limitations, and builds collaboration with external stakeholders such as tourism groups. A qualitative case study approach was employed, using semi-structured interviews, document analysis, and field observations to collect data. Thematic analysis was applied to identify key patterns related to strategic alignment, human capital, financial governance, and institutional synergy. The findings reveal that BUMDes Wukirraya exhibits adaptive governance by reallocating limited resources based on unit performance and seasonal demand. However, challenges persist in terms of managerial expertise, financial literacy, and limited synergy with local institutions. Despite these issues, the organization has shown steady growth in net income and increasing community participation. This study highlights the importance of flexible management, local potential utilization, and cross-sector collaboration in sustaining rural enterprises. The case of BUMDes Wukirraya provides valuable insights for rural entrepreneurship models in similar socio-economic settings. The case of BUMDes Wukirraya offers valuable insights for developing sustainable rural enterprises in similar socio-economic settings. These findings are especially relevant to Malaysia, where government-led initiatives like TEKUN, SME Corp, MARA, and Tourism Malaysia support community-based economic development. This study contributes to strengthening rural entrepreneurship strategies in both countries.