Informal settlements are one of the main undesirable consequences of cities, which brings informal life in the physical dimension for cities. The purpose of this research is to design a business model in informal settlements with the approach of reducing economic poverty in Kurdistan.The research method from the aspect of practical purpose, in terms of library-field data collection, in terms of the time period of cross-sectional data collection in terms of the research method in the field of mixed exploratory research (quantitative-qualitative) and the statistical population of all professors, There are experts and specialists and people who have experience and activity in the sector of informal settlements who participated in two qualitative sections until reaching theoretical saturation, the number of 16 people.And in the quantitative part, using GPower software, 231 people were selected as a statistical sample, and a researcher-made questionnaire with validity and reliability was distributed among them, and the data results were analyzed in two parts, descriptive and inferential. The findings indicate that the development of business in informal settlements requires the development of women's home businesses, the development of businesses by facilitating the issuance of licenses, training people, skill empowerment, trust in social capital and the participation of benefactors and people and capital. Establishing and allocating a suitable budget is one of the business development strategies in informal settlements.