Justifying the Role of Digital Economy Education in Enhancing the Performance of BUMDES and KUD

Abstract

Digital transformation has significantly influenced economic activities, including the operations of community-based enterprises such as Village-Owned Enterprises (BUMDES) and Village Unit Cooperatives (KUD). However, many of these institutions still face challenges related to limited digital literacy, technology utilization, and modern business management practices. This community service program aimed to strengthen the capacity of BUMDES and KUD managers through digital economy education to enhance business performance and sustainability. The activity employed a participatory training approach involving lectures, discussions, and practical explanations regarding digital marketing, financial management, and digital business strategies. The program was conducted at the Institut Bisnis dan Teknologi Pelita Indonesia, Pekanbaru, with participants consisting of managers and representatives of BUMDES and KUD. The results show that the activity successfully increased participants’ understanding of digital business concepts, including the use of social media marketing, e-commerce platforms, and digital financial management tools. Participants also gained insights into business performance evaluation, such as return on investment (ROI) and break-even point analysis. Despite several challenges related to technological infrastructure and digital literacy, the program demonstrated that digital economy education can significantly improve managerial capacity and encourage the adoption of digital tools in local business operations. Therefore, strengthening digital literacy through community service initiatives is essential to support the competitiveness and sustainability of BUMDES and KUD in the digital era.