A Study on the Competitiveness of Group-Based Enterprises in “Desa Mandiri Anggur Merah” on Sumba Island, East Nusa Tenggara Province


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FORMOSA NEWS - Sumba - Livestock and Food Crops Drive the Competitiveness of Village Enterprises in Sumba. This finding was revealed in a reset by Christiana Wahyuningrum from the Oemathonis School of Economics (STIE Oemathonis Kupang), together with Thomas Ola Langoday from the same institution, Marius Masri and M. E. Perseveranda from Widya Mandira Catholic University, and Agustina Sadri Yathy Lay from STIE Oemathonis Kupang. The study was published in 2026 in the Asian Journal of Management Analytics.

These findings matter because they show that the success of rural economic development is not determined solely by the size of government funding, but by how well business activities match local resources and regional characteristics. Enterprises that align with local strengths are far more likely to survive and grow sustainably.


The Desa Mandiri Anggur Merah Program and Field Realities


The Desa Mandiri Anggur Merah program was launched by the East Nusa Tenggara Provincial Government to accelerate poverty reduction and increase rural incomes. Through this program, each participating village received approximately IDR 250 million to support group-based productive economic activities.

 

On Sumba Island, the program was implemented extensively between 2011 and 2013, covering hundreds of villages and thousands of business groups. These groups operated across a wide range of sectors, including livestock, agriculture, fisheries, cooperatives, small-scale industries, and trade.


How the Study Measured Village Enterprise Competitiveness


To identify truly competitive enterprises, the researchers mapped group-based businesses across four regencies on Sumba Island: East Sumba, Central Sumba, West Sumba, and Southwest Sumba.

Competitiveness was assessed by comparing:

  • The number and concentration of business groups by sector.
  • Regional comparative advantages.
  • Growth patterns across regencies.
  • The ability of enterprises to survive and expand beyond local markets.

This approach allowed the researchers to identify priority sectors based on real economic performance rather than assumptions.


Livestock Emerges as the Most Competitive Sector


The study shows that livestock is the backbone of village economic competitiveness on Sumba Island. Livestock enterprises significantly outnumber other types of group-based businesses.

The data indicate that:

  • East Sumba recorded the highest number of livestock groups, reaching 203 groups in 2012.
  • Southwest Sumba followed with 94 groups.
  • West Sumba and Central Sumba lagged behind with 44 and 22 groups, respectively.

In terms of commodities, cattle farming dominates in East Sumba due to its high economic value and land availability. Meanwhile, pig farming is the most competitive activity in Southwest Sumba, largely because of its shorter production cycle and faster income generation.


Implications for Rural Development Policy

The study sends a clear message to policymakers: rural economic empowerment programs are more effective when they:

  • Are grounded in real local potential.
  • Encourage cooperation among business groups.
  • Focus on value creation rather than raw production.
  • Are supported by market access and strong local institutions.

Without clear strategic direction, many village enterprises risk remaining small, fragmented, and vulnerable to economic shock.


Author Profiles

Christiana Wahyuningrum, S.E.
Lecturer in Accounting, Oemathonis School of Economics (STIE Oemathonis Kupang).
Her expertise includes village enterprise development and community-based economics.


Thomas Ola Langoday, S.E., M.M.
Lecturer in Management, Oemathonis School of Economics (STIE Oemathonis Kupang)

His research focuses on competitiveness, regional development, and public policy.


Marius Masri, S.E., M.E.
Lecturer in Development Economics, Faculty of Economics, Widya Mandira Catholic University, specializing in poverty and regional development.


M. E. Perseveranda, S.E., M.E.
Academic in Development Economics, Widya Mandira Catholic University, with a focus on regional growth and industrial clusters.


Agustina Sadri Yathy Lay, S.E., M.M.
Lecturer in Management, Oemathonis School of Economics (STIE Oemathonis Kupang), specializing in MSME development and community empowerment.


Source

Christiana Wahyuningrum, Thomas Ola Langoday, Marius Masri, Perseveranda, Agustina Sadri Yathy Lay. A Study on the Competitiveness of Group-Based Enterprises in “Desa Mandiri Anggur Merah” on Sumba Island, East Nusa Tenggara ProvinceAsian Journal of Management Analytics (AJMA), Vol. 5 No. 1, hlm. 197–216. 2026

DOI: https://doi.org/10.55927/ajma.v5i1.16174   

URL: https://journal.formosapublisher.org/index.php/ajma  

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