The influence of village funds on the development of village economic potential: A case study

The study aims to analyze the impact of the effectiveness of the village fund, the allocation of village funds, and the participation of the public in the management of the rural funds on the development of the economic potential of the people in the Perolihen Village, Sitellu Tali Urang Jehe, Pakpak Bharat Regency. The study employed a quantitative approach, surveying 63 respondents from the Perolihen Village population through a questionnaire. The obtained data was analyzed using the Structural Equation Modeling Partial Least Squares (SEM PLS). The results of the research show that the effectiveness of village funds and the management of the village fund have a significant influence on the development of the economic potential of the people in the Perolihen Village. However, public participation in village fund management does not have a significant influence on the development of the population's economic potential.