Sustainable Business Models for Islamic Boarding Schools: A Strategy for Regional Economic Independence

Abstract

Business sustainability has become an important concern for community-based micro-enterprises, particularly within Islamic boarding schools where economic activities are expected to support institutional self-reliance and local economic development. However, many pesantren business units face challenges related to unsold products, inefficient inventory circulation, and limited marketing strategies. This study aims to examine how marketing innovation and waste reduction strategies contribute to strengthening business sustainability in pesantren-based micro-enterprises. The research employed a qualitative case study design conducted at a pesantren canteen unit in Banyuwangi, Indonesia. Data were collected through in-depth interviews, observation, and documentation involving business unit managers, canteen staff, and student consumers. The data were analyzed using an interactive analysis model consisting of data condensation, data display, and conclusion verification. The findings reveal that simple marketing innovations such as product bundling, product variation, and adaptive product display can increase consumer interest and accelerate product circulation, thereby reducing unsold inventory. Waste reduction emerges as a consequence of improved inventory management and responsiveness to consumer preferences. The study concludes that the integration of marketing innovation, operational adaptation, and value-based resource management forms a practical sustainable business model in pesantren micro-enterprises. These findings contribute to the development of sustainable micro-enterprise strategies and highlight the potential role of pesantren institutions in supporting community economic resilience.