ABSTRACT
The study of Zakat to deal with poverty issues is still booming in Indonesia. However, the most study did not elaborate in more detail especially in the relation zakat management, level of assistances, and micro businesses incubation effectivity. To deal with the issue, therefore, this research aims to develop a comprehensive model of micro business Incubation by employing a mix approach. The findings of the first phase of the study indicate that the micro business empowerment model through BAZNAS free loans interest and assistance requires training management skills, innovation and marketing assistance. Thus, model is expected able to improve the performance of micro-businesses. The findings of the second phase of the study indicate that the micro business incubation through free loans interest and assistance, positively influences the performance of micro business.

Key words: poverty, financing, micro business, performance

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