Asnaf entrepreneurship programs introduced by zakat institutions in Malaysia acts as a mechanism that empowers productive asnaf through the provision of capital assistance, training, coaching, mentoring and promoting innovation in business. However, the program’s effectiveness is subjective because only a few of zakat funds receivers succeed in their business. Thus, this research aims to identify the process and procedures of business funding for asnaf entrepreneurs among students and evaluate the best practices of business funding for asnaf zakat entrepreneurs in higher education institutions from Islamic perspective. This qualitative research is based on case study and literature review, which is very useful in identifying the current procedures used in business funding for asnaf entrepreneurs in higher education institutions. This study finds that the implementation of business for asnaf zakat entrepreneurs in higher education institutions involves several approaches and procedures that must be followed. Among them are efforts to obtain approval in Zakat Fund Distribution Committee Meeting, promoting opportunity to run business, registration with Companies Commission of Malaysia (SSM) and obtaining food handling course certificate, application of business space from Malaysian Academy of SME & Entrepreneurship Development (MASMED), getting typhoid vaccination, attending food handling training, providing business supplies, implementation of buying and selling (Al-Bai’) concept, obtaining profit and paying monthly rent, submitting profit report to Zakat Unit (UZSW) and MASMED. Another finding highlighted by this study is the distribution and management of zakat funds for student entrepreneurship projects based on Islamic principles and guidelines.