THE EFFECT OF CAPITAL, COMPETENCY, AND COMPENSATION TOWARDS COMMUNITY PARTICIPATION AND PERFORMANCE OF VILLAGE-OWNED ENTERPRISEIN DENPASAR CITY

ABSTRACT: The purpose of this study was to analyze and determine the effect of venture capital, competence,and compensation on community participation and the performance of village-owned enterprises in Denpasar.The data used in this study are primary data, namely by distributing questionnaires to the management ofVillage-Owned Enterprises in the City of Denpasar. The sample used in this study was 13 Village-OwnedEnterprises in the City of Denpasar, using purposive sampling technique determination. Using panel data on thenumber of Village-Owned Enterprises in Denpasar City in 2015-2017, there were 52 samples. The analysistechnique used in this study is path analysis. The results showed that business capital, competence, andcompensation had a positive and significant effect on community participation. This shows that the more precisecapital management is carried out, the increased competence of the managers of the Village Owned Enterprisesand the corresponding compensation given, the community participation in the Village Owned Enterpriseprogram will be even higher. Business capital, competence, and compensation have no effect on theperformance of village-owned enterprises. Community participation has a positive and significant effect on theperformance of village-owned enterprises. This shows the higher community participation, it will improve theperformance of Village-Owned Enterprises.

Keywords: capital, competence, compensation, community participation, performance, Village-OwnedEnterprises