This study aims to analyse the role of Micro, Small and Medium Enterprises (MSMEs) in labour absorption in Lemerek Hamlet, Puyung Village, Jonggat Sub-district, Central Lombok Regency. The focus of the study is on the Dharma Setya Songket Weaving MSME as a representative of the culture-based local economic sector. This study used a qualitative descriptive method, with data collection techniques including in-depth interviews, field observations and documentation involving MSME operators, employees, the head of the hamlet and community leaders. The results of the study indicate that the Dharma Setya Songket Weaving MSME plays a significant role in employing local labour, with a workforce of 20 people, the majority of whom are women of working age. The types of jobs available include production, marketing and packaging, which directly contribute to increased income and community welfare. The recruitment process is social-based and inclusive, relying on recommendations and family connections. Internal and external training organised by the business owner in collaboration with the Central Lombok Regency Cooperative and SME Agency has helped to improve the skills and productivity of the workforce. Workers’ wages range from Rp1,500,000 to Rp3,000,000 per month, which is considered sufficient to meet living expenses and improve family welfare. As well as reducing unemployment, the Dharma Setya SMEs also serve as a means of preserving local culture through the art of weaving, which has been passed down through the generations. Support from the government and external organisations in the form of training, capital assistance and product promotion further strengthens the businesses’ existence and sustainability. Hence, SMEs in Lemerek Hamlet play a strategic role not only in labour absorption but also in community economic empowerment, cultural preservation and the improvement of social welfare. Continuous collaboration between business operators, the community and the government needs to be constantly strengthened so that the SME sector can grow sustainably and become a major pillar of the economy in Lemerek Hamlet.