The role of village-owned enterprises in agriculture sector in enhancing community welfare in Tampahan District, Toba Regency, North Sumatra, Indonesia

The farming business needs to obtain support to increase the income and welfare of farmers. This study aims to analyze the role of village-owned enterprises (BUM Desa) in agriculture sector in enhancing community's welfare. The research was conducted in Gurgur Aekraja Village, Tampahan District, Toba Regency, from January to April 2021. A number of 66 farmers were determined as respondents using a simple random sampling. Respondents' perceptions of variable indicators were measured using a Likert scale. The role of BUM Desa is measured based on the effect of the independent variables on the dependent variable with multiple linear regression model. Farmers' perceptions of variable indicators are in the very good category, with a score 4.34 for the establishment of BUM Desa, 4.43 for BUM Desa activities, and 4.42 for community welfare. Based on multiple regression analysis, it was concluded that the establishment of BUM Desa and BUM Desa activities plays a significant role in improving community welfare. The contribution of this research is as a consideration for the establishment of BUM Desa in the future that the aspirations and needs of rural communities are the most important things in developing new institutions at local level. Furthermore, a collaboration of communities, village governments, facilitators, and other stakeholders; can determine the core business of BUM Desa based on the potential of unique local resources.