Vol. 1 No. 1 (2024): March

This study examined the effect of Village Owned Enterprises (BUMDes) on improving the economy of the community according to the perspective of Islamic Economics in the South Aceh Regency. This study used primary data obtained by distributing questionnaires to 100 respondents. The data analysis method used was a simple linear regression method using Eviews 10. The results indicated that Village Owned Enterprises (BUMDes) positively and significantly influenced improving the economy of the community in Alur Mas village, South Aceh Regency, with a value of t-count > t- table or 10.92 > 1.98 with a probability level of 0.0000, which was significant at 5%. However, the BUMDes variable could only affect the economic growth of 55%. This result appeared from the R-square value of 0.549121, assuming that there were other variables of 45% outside the research model that could affect the economic improvement of the people in the South Aceh Regency.