Proceedings of the 2nd Aceh Global Conference on Business Economic and Sustainable Development Trends (AGC-BEST) 2019, October 17-18, 2019, Banda Aceh, Indonesia The Contribution of Village Owned Enterprises in Improving Rural Economy in Nagan Raya Regency 1*Wahyuddin, 2 Ar Royyan Ramly, 3 Muslim A. Djalil, and 4 Mirna Indriani 1Lecturer of Islamic Banking Department, Faculty of Islamic Studies, Universitas Serambi Mekkah, Indonesia; 2Lecturer of Islamic Banking Department, Faculty of Islamic Studies, Universitas Serambi Mekkah, Indonesia; 3Senior Lecturer of Islamic Economic Department, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia; 4Senior Lecturer of Accounting Department, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia; *Corresponding author:
[email protected] Abstract - This study aims to analyze the influence of the contribution of Village-Owned Enterprises (BUMDes) in Improving the Economy and welfare of rural communities in Nagan Raya district. Nagan Raya, with a wealth of potential villages, owned such as agriculture, plantations, animal husbandry, and small industries. However, the management of BUMDes in Nagan Raya Regency has not been maximized. The research sample in ten sub-districts in Nagan Raya that has a Village-Owned Enterprises (BUMDes) is selected BUMDes that are already running or active in each district. The research sample locations were taken by Gampong Langkak, Gampong Purworejo, Gampong Cot Kumbang, Gampong Alue Peusaja, Gampong Alue Gajah, Gampong Krueng Itam, Gampong Garu, And Gampong Simpang Peut. This study uses a quantitative approach and uses descriptive statistical estimates, to the contribution of BUMDes to economic improvement in Nagan Raya district. The dependent variable used is the Village Growth Percentage (Y), while the independent variable used is Social Capital (X1), Regional Potential (X2), Human Resources (X3).