<![CDATA[Local economic transformation is a crucial strategy for improving community welfare by strengthening economic capacity based on regional potential. This article aims to analyze the role of an entrepreneurial ecosystem and sustainable innovation based on Sharia values in supporting local economic transformation in Madura. Using a community empowerment approach involving outreach, entrepreneurship training, business mentoring, and Focus Group Discussions (FGDs) with local stakeholders, this study evaluates how systemic interactions drive structural economic changes. The findings reveal that Madura possesses substantial economic potential across the MSME, agriculture, fisheries, trade, creative industries, and culture-based tourism sectors. The intervention successfully enhanced local business productivity and digital technology adoption, driving behavioral shifts toward digital marketing and improved financial management. Crucially, the study concludes that local economic transformation relies on an integrated pentahelix ecosystem—fostering collaboration among government, academia, business actors, communities, and media—rather than isolated growth initiatives. Furthermore, Sharia values such as trust (amanah), honesty (shiddiq), justice ('adl), and public welfare (maslahah) function substantively as social capital that reinforces business governance, trust, and resilience. Despite persistent structural challenges including capital constraints, low digital literacy, and limited market networks, this research provides practical and academic contributions toward an inclusive, competitive, and sustainable local economic development model tailored to the socio-cultural characteristics of the Madurese community.]]>
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