Micro, Small, and Medium Enterprises (MSMEs) are widely recognized as key drivers of economic growth, employment, and poverty reduction, especially in developing countries like Indonesia. Despite their potential, many MSMEs continue to struggle with limited resources, a lack of strategic planning, and weak market access. In rural areas, such as Wonogiri, the sustainability of MSMEs is further challenged by limited digital literacy, poor financial management, and intense market competition. While numerous studies have explored marketing strategies in MSMEs, most of them focus on conventional business approaches without adequately considering the integration of ethical frameworks, particularly Islamic economic principles [1] .

Additionally, although the role of MSMEs in achieving the United Nations Sustainable Development Goals (SDGs) has been increasingly acknowledged, few studies explicitly connect MSME business practices with specific SDG targets. Even fewer examine how Sharia-based management principles can contribute to inclusive, ethical, and sustainable business growth. This creates a critical research gap in understanding how Islamic values—such as honesty (ṣidq), trustworthiness (amānah), and fairness (‘adl)—can be applied in the marketing and operational strategies of MSMEs to support not only business success but also broader social and developmental goals [2].

Furthermore, current literature often overlooks localized and grassroots business models such as food stalls or traditional vendors, which remain economically vital in Indonesian communities. Warung Sate Madura, as a culinary MSME rooted in local culture, represents a valuable case for exploring how simple, ethical, and community-centred strategies can deliver long-term performance outcomes. This study addresses these gaps by investigating how sharia-based management and marketing strategies are applied in a real-world MSME context and how such practices align with and support selected SDGs. It provides fresh insights into how local enterprises can pursue both profitability and sustainability through ethical, faith-based, and socially conscious approaches [2].

Micro, Small, and Medium Enterprises (MSMEs) have a crucial role in the economy of Indonesia. They account for around 99% of the total business units and 61% of the Gross Domestic Product (GDP), and absorb 97% of the national workforce. MSMEs function as economic drivers, provide jobs and improve people's welfare, especially in remote areas. They also contribute to the country's foreign exchange through local exports. In critical times, MSMEs have proven to be resilient and able to maintain economic stability. Therefore, the strengthening of MSMEs is very important for the sustainability of the national economy [3] .

The criteria for businesses to be included in the MSME category in Indonesia are determined based on Law No. 20 of 2008 and the latest Government Regulation, which explains as follows:

Business Micro

Small Business

Handling Business

Every business activity will always have competition with other businessmen. Especially for products that are often found in the community. However, with the existence of competition, growth in products and marketing is increasing. Strategies carried out in marketing must be easily accepted by logic, with business units that are expected to achieve their marketing goals. In addition, strategy in marketing can also be described as the selection of the market and targets, determining the competitive position, and developing an effective marketing strategy to reach the selected clients. Islamic economics plays an important role in guiding ethical business strategies. The application of Islamic business ethics in business marketing strategies is very important to build customer trust and loyalty. Honesty and transparency in business must be prioritised, so that consumers feel that the information provided is accurate and not misleading. Misleading in this case is a guarantee of halalness for consumption. In the teachings of Islam, it has been explained in Q.S Al-Baqarah verse 168, which reads: It means: "O man, eat some (food) on earth that is halal and good and do not follow the steps of Satan, for he is a real enemy to you" [5] .

In the MSME sector, the culinary business has great potential because food is a basic need of the community that must be met. Halal is meant by the verse halal, both the substance and the way it is obtained. In addition to being halal, food must also be good, healthy, safe, and not excessive. Do not follow the steps of Satan mentioned in the verse means that you should not let your business be built by following the steps of Satan, who always meets your physical needs even in a way that is not by the provisions of Allah. Islamic economics emphasizes social justice and equitable distribution of wealth, encourages businesses to avoid exploitative practices, and ensures that profits are not enjoyed by just a few. The prohibition of riba in Islamic economics encourages much fairer financing practices [6].

The Sharia business that is carried out will undoubtedly bring Muslim entrepreneurs to prosperity by always meeting ethical standards of business behavior, as well as piety to Allah SWT, kindness, trust, and friendliness. The devotion of a Muslim entrepreneur is a form of remembering Allah SWT in every business activity so that in carrying out his business activities, he can avoid bad nature, cheating, lying, and also deceiving consumers [7]. Every strategy carried out by every MSME has great potential to encourage business growth, especially by taking advantage of the uniqueness of the product and its proximity to the local market [8]. The advantages that MSMEs have are not all that can be emulated by large companies, such as product personalisation, emotional relationships with customers, and flexibility in the face of changes in market needs. In addition, with increasing access to digital technology, MSMEs have the opportunity to expand their market reach through social media, e-commerce, and other digital marketing strategies that can reach a wider range of consumers without requiring high costs [9].

Sharia-based marketing strategies provide great opportunities for MSMEs to develop their businesses ethically, by Sharia principles that emphasize fairness, honesty, and transparency. The main potential of Sharia marketing is the ability to build customer trust and loyalty through approaches that are in line with religious values, such as avoiding usury, gharar, and unethical practices [10]. In addition, Sharia marketing also has a special attraction for the importance of halal products in the community and an attraction for consumers who are increasingly aware of the importance of halal products for consumption and Sharia-based services. Through this approach, MSMEs can expand the market by targeting consumer segments who are looking for business solutions that are not only quality but also by Islamic teachings [11]. However, Islamic marketing strategies also face risks and challenges. Competition between other MSME founders is becoming increasingly fierce. In addition, consumer appeal is greatly influenced by the ability of MSMEs to ensure that their products and services are implemented with sharia principles. Another risk faced is the lack of understanding of the wider community towards the concept of marketing by the wider community towards the concept of sharia marketing, so education for consumers is one of the important elements of this strategy [12].

Therefore, maximizing the potential and reducing risks of MSMEs requires developing an integrated Sharia marketing strategy, such as prioritizing Islamic values and marketing communication, and utilizing digital platforms as a means of marketing by Sharia principles. Thus, sharia-based marketing is not only a tool to increase competitiveness, but also a form of MSME contribution in promoting sustainable business ethics [13] . If reviewed in general, the goals and targets that are desired to be achieved are the achievement of MSMEs with strong independent participants who also have a high level of competitiveness and have a major role in the production and distribution of various basic needs, then also raw materials, as well as capital that can stand on its own, which is carried out on individuals and business institutions in all economic sectors [14] .

Production is a series of activities carried out to create goods and services needed for customers. Marketing is a form of value exchange between two parties, such as exchanging products for money owned by customers [15] . Production and marketing that uses the concept of Sharia economics is based on Islamic teachings, which have the goal of achieving good and eliminating evil and misery. This needs to be known and studied by business actors so that in carrying out their business practices, they do not create losses for other individuals or themselves [16] .

The development of MSMEs in the country is very rapid, and there are also many MSME owners with Islam, but it is not balanced by improving the quality of human resources (HR) from their MSME actors. In practice, every trader often cheats to get a big profit, one of which is the marketing problem. Fraud, even though marketing is a common thing found in trading activities. Several factors were found to indicate that the main factors came from the individual perpetrator, who had a background of cheating, emotional instability, or lack of ability also affected the cheating factor [17].

This includes strategic management, which is very important for MSMEs. Strategic management includes structured and planned decision-making to achieve long-term goals and adapt to changing times and an ever-evolving environment [18]. For MSMEs, strategy management is the main tool to deal with limited resources and fierce competition. Strategy management helps MSMEs recognize and utilize available market opportunities. By conducting an in-depth market analysis, MSMEs can determine potential market segments, understand customer needs and preferences, and design effective marketing strategies. With a solid strategic plan, MSMEs can differentiate themselves from competitors, provide unique added value, and build a competitive advantage [19].

Marketing strategy is a process that includes several aspects such as opportunity analysis, target determination, strategy development, implementation planning, and budget allocation. From this, it can be concluded that a marketing strategy is a series of actions that encompass a marketing mix strategy consisting of products, prices, promotions, and places designed to achieve sales targets [20] . With a clear sales target, it can be implemented and planned in detail in the marketing mix, which is a combination of tactical elements that are controlled by it. Thus, it can be concluded that marketing strategy plays an important role in introducing products to the market. Sellers and artisans need a structured and systematic strategy, as well as effective communication about products, so that marketing goals can be achieved. Success in achieving marketing goals is highly dependent on how products are marketed to consumers, one of which is influenced by good organization and operations [21] .

In Islam, every business activity must be carried out according to the applicable law to ensure that no party is harmed. Therefore, business activities must be in line with Islamic law and general rules of the country. Any attempt that harms other parties or violates the law will be subject to sanctions, and in Islam, such transactions are considered null and void. Doing business or trying is allowed in Islam. The man was created by Allah as the caliph on earth, who carries out business and hard work. This business can be in the form of doing business or entrepreneurship, which involves the management of the mandate given to humans [22] .

Sharia marketing is a business strategy approach that leads to the process of creating, offering, and changing the value from one party to another with a process that follows the provisions of the contract and the principles of muamalah in Islam. As long as this can be guaranteed and there is no deviation from the principles of Islamic muamalah in transactions or business processes, then any type of transaction in marketing is allowed [23] .

This study adopts a qualitative approach with a descriptive research design. The use of this approach is intended to obtain a comprehensive and in-depth understanding of the marketing strategies implemented by Micro, Small, and Medium Enterprises (MSMEs), particularly in the context of applying Islamic economic principles. The object of this study is Warung Sate Madura Cak Khoirul, an MSME that operates in the culinary sector in Wonogiri, Indonesia. The primary data collection method used is in-depth interviews, which allow researchers to explore the actual practices, values, and decision-making processes adopted by the business owner. The interview was conducted directly with the owner of Warung Sate Madura Cak Khoirul, focusing on how marketing strategies are formulated, the extent to which sharia principles are integrated, and what challenges are encountered in aligning business operations with Islamic values. The interview guide was designed based on relevant concepts from marketing strategy theory and Islamic economic principles such as fairness, transparency, and ethical conduct in trade [24] .

The questions in the interview guide were divided into several main themes: (1) the marketing strategy used, including product positioning, pricing, promotion, and distribution; (2) the owner's understanding and application of Islamic business ethics; (3) obstacles faced in implementing sharia-compliant strategies; and (4) the business's contribution to the surrounding community and sustainability aspects. This last theme is linked to several Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), and SDG 16 (Peace, Justice, and Strong Institutions). In order to validate the data, triangulation techniques were applied by comparing the information obtained through interviews with observations of the daily operations of the food stall. Observations focused on customer service practices, pricing transparency, and promotional techniques -such as the use of social media and word-of-mouth recommendations. The researcher also paid attention to how the business builds consumer trust, maintains product quality, and adheres to ethical standards consistent with Islamic teachings [25] .

Through this methodology, the study not only captures how an MSME implements effective marketing strategies but also reveals how Islamic values can coexist with modern business practices. Moreover, the method emphasizes how these sharia-based approaches can support broader goals such as economic inclusion, ethical entrepreneurship, and sustainability, in alignment with the SDGs. Thus, the research provides meaningful insights into the integration of faith-based principles within local MSME business strategies [26] .

The application of the marketing strategy in Warung Sate Madura Cak Khoirul Purwantoro uses the data management stage derived from interviews with resource persons, namely those who own businesses and employees. Strategy in marketing is a problem that is considered very important for MSME businesspeople. A marketing strategy is a step to achieve the goals or targets that it implements. In the MSMEs, Warung Sate Madura Cak Khoirul uses marketing through market segmentation, determining the target market, along with determining the market position as well as in the marketing mix and with the Marketing Mix which consists of four elements, namely in the form of products, tariffs, then also promotions, along with the place [27] .

In running its business, Warung Sate Madura Cak Khoirul can be considered successful in marketing where business actors have determined a product with high quality, set affordable selling rates, and promote products so that the public knows the business created and the place that is not difficult for the community to reach, also the distribution can be considered good.

This study concludes that Warung Sate Madura Cak Khoirul in Wonogiri is a strong example of how Micro, Small, and Medium Enterprises (MSMEs) can effectively integrate Islamic economic principles into business management and marketing strategies. The practices implemented by the business owner reflect the foundational values of sharia economics, including honesty (ṣidq), trustworthiness (amānah), intelligence (fathanah), transparency (tablīgh), and consistency (istiqāmah). These values are not only embedded in individual behavior but are also operationalized through business decisions related to production, pricing, promotion, and positioning. From a marketing perspective, the business demonstrates clarity in targeting and segmenting its market by location, age range, and purchasing behavior. Though the methods used—such as word-of-mouth and social media promotion—are simple, they are highly effective and cost-efficient. Pricing is determined fairly, considering raw material costs and market purchasing power, without exploiting consumers. These practices uphold the Islamic principle of justice (‘adl) in transactions and directly contribute to SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 12 (Responsible Consumption and Production). In the realm of production, Warung Sate Madura adheres to Islamic standards by ensuring halal materials and avoiding prohibited elements. The product quality is consistently maintained, reflecting the Islamic obligation to provide not only lawful (halal) but also good (tayyib) goods. These efforts position the business within the broader ethical consumption movement, supporting SDG 3 (Good Health and Well-Being) and SDG 16 (Peace, Justice, and Strong Institutions). Cak Khoirul’s proactive response to change, particularly through technology adoption in promotion, shows entrepreneurial adaptability that aligns with SDG 9 (Industry, Innovation, and Infrastructure). While the business still faces challenges—such as limited digital infrastructure and the need for structured financial recording—it's resilience and community-oriented approach reflect the spirit of khilafah (stewardship) and maslahah (public benefit) in Islamic economics. Furthermore, the MSME supports local economic circulation, provides employment, and strengthens food accessibility—essential components of inclusive and sustainable development. By upholding sharia principles in everyday operations, the business contributes not only to individual prosperity but also to societal welfare. In conclusion, the case of Warung Sate Madura Cak Khoirul illustrates how MSMEs can act as agents of sustainable, ethical development. It affirms that sharia-based business models are not only viable but essential in building economic systems that are equitable, inclusive, and in alignment with the global Sustainable Development Goals (SDGs).

The authors express sincere gratitude to Universitas Muhammadiyah Surakarta for its academic and logistical support, and to all informants at Warung Sate Madura Cak Khoirul who provided valuable insights and cooperation throughout the research process.

Both authors contributed equally to the conception, research design, data collection, analysis, and drafting of this article. They collaborated in integrating sharia economic principles and SDGs perspectives into the study of MSME strategies in rural Indonesia.

The authors declare no conflict of interest. This research was conducted independently, without any financial, commercial, or institutional influence that could affect the objectivity, integrity, or transparency of the findings and interpretations presented.