Purpose: This study aims to analyze the influence of village fund capital participation on the development of Village-Owned Enterprises (BUMKam) and its impact on the economic improvement of the community in Wania District, Papua. It seeks to understand how financial support from village funds contributes to the sustainability of BUMKam operations and local economic growth.

Research/methodology: The research employs a quantitative descriptive approach, using questionnaires, observation, and documentation as primary data collection methods. A purposive sampling technique was applied to gather responses from 13 individuals, including BUMKam administrators and affected community members. The analysis focuses on comparing pre- and post-capital injection conditions, emphasizing indicators such as enterprise development, job creation, and community welfare.

Results: The findings show that capital participation from village funds has positively influenced the growth of BUMKam in Kampung Mawokauw Jaya and Kampung Nawaripi. It enabled the establishment of several productive units and provided job opportunities, contributing to increased local income and economic activity. However, challenges remain, particularly in financial reporting and management capacity among BUMKam administrators.

Conclusions: While the injection of capital has facilitated enterprise growth and modest improvements in local welfare, the full potential of BUMKam is hindered by gaps in administrative skills and community engagement. Sustainable impact requires capacity building, transparent governance, and strategic support.

Limitations: This study is limited by its small sample size (13 respondents), which may not fully represent the broader community perspective. Additionally, the analysis relies primarily on descriptive statistics and qualitative insights without employing inferential or longitudinal methods that could provide deeper causal understanding.

Contribution: This study provides preliminary evidence of the positive impact of Village Fund capital participation on Village-Owned Enterprises (BUMKam) and the local economy, while offering practical insights for more effective village fund management.