Abstract:
Based on data of 379 migrant workers who returned home to start business in Henan Province, this paper studies the influence of relative and absolute location on the types of business these migrant workers started by establishing a multinominal logit model. It is found that business location does affect the motivation of migrant workers’ entrepreneurship back home. There are many factors that have remarkable influences on the motivation of the migrant workers’ choice of starting their own business, such as the terrain of their hometown, distances to the county town and village town, the enthusiasm of local residents in their hometown and support from the government. Therefore, during the process of guiding migrant workers to return home and start their own business, the government should fully respect the differences in endowments and talents, combine the geographical stratification intentions to policy guidance with better pertinence.