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To encourage the growth of the village economy, the Village Law also mandates the establishment of a Village Business Company (VBC). The VBC is expected to be able to become an instrument of village development, both in terms of economic development and social development. Langkat Regency is one of the Regency in North Sumatera that responded to the establishment of the VBC by making a Regional Regulation that requires all villages to establish VBC. Based on the Regent's Regulation, every village, including Pulau Kampai Village, Pangkalan Susu District, Langkat Regency, tried to initiate a VBC, in accordance with the potential of Natural Resources, Human Resources, and needs of each village. Seeing the important role of VBC in the economic and social empowerment of rural communities, it is necessary to conduct a study of the existence of VBC since its inception until the present condition which is already more or less 4 years (2015–2019). This is necessary to see how the VBC development model is in the effort to empower the economy and social village communities. The findings of this model are needed so that it can be replicated to other VBCs and VBC has an alternative model in order to develop the VBC they are managing. This study uses a combination of qualitative and quantitative research design approaches with a combination model used in this study is dominant-less dominant design. The result shows that the Savings and Loan Business Unit was chosen because most of the residents of this village work are traditional fishermen, where this work is always tinged with income uncertainty, so that institutions are needed to be able to provide loans when they need them. VBC Sejahtera Bersama is principled as an institution that empowers rural communities to become more productive and effective. [ABSTRACT FROM AUTHOR]

Conducted in four villages which are located in four Districts in North Sumatera Province, Indonesia, this study evaluates village community empowerment through village owned enterprise that is based on social capital in North Sumatera. The study is conducted by using a combination of qualitative and quantitative approaches where the qualitative data were obtained through in-depth interviews, while the quantitative data were obtained through survey by questionnaire. Analyses were made on three aspects of community empowerment: institutional aspects, economic aspects, and socio-cultural aspects. Results show that the various empowerment programmes have helped the communities to develop their economic activities in the villages through business activities. The implication of this study to the policy for Village Law is that all business carrying out with funds based on the village owned enterprise must refer to the applicable law to avoid any deviation. [ABSTRACT FROM AUTHOR]