Study On Entrepreneur’s Making Decision Of Hometown-returning Investment

Today, the Chinese central government and all the local governments areworking diligently to achieve the "Chinese dream" of the revival of the ChinesePeople. Local governments at all levels, especially the ones in theeconomic-underdeveloped regions, face the following difficulties: the developmentof county economy, relocating surplus labor force, balancing urban and ruraldevelopment and promoting the process of new urbanization.Entrepreneurship has become an important force to drive national or regionaleconomic development, which is an indisputable fact and has been proved by thepractice of developed countries in the world and domestic developed regions. Manylocal governments have been aware of the role of entrepreneurship in promoting thedevelopment of the local economy. So, it’s a difficult problem for them how toencourage the local entrepreneurial activity effectively to create more employmentopportunities and promote local economic and social progress.Since the reform and opening up, entrepreneurial practice has been developingfast. A large number of the migrant workers have become entrepreneurs throughentrepreneurship. They own rich human resource: a relatively abundant capitalstrength, rich management experience and interpersonal resources. Meanwhile theyhold deep emotions with their birth places. Making full use of these resources andattracting them to invest will play an important role in these aspects: promoting localemployment, increasing tax, promoting county economy and new urbanization andso on, which can be regarded as a short cut to get the twice result with the half effortin underdeveloped areas. Therefore, it’s urgent for the local governments how toattract these entrepreneurs to invest in their hometown.With the improvement of economic conditions and the migration of a largenumber of enterprises around the coastal under the wave of industrial structureadjustment, migrant workers are reducing unceasingly, the problem of "shortage ofmigrant workers" has emerged and enterprises are increasingly hard to employ especially after the2009financial crisis, followed by the increase of the operatingcosts. Thus, entrepreneurs are eager to seek new ways. And returning to theirfamiliar hometown to invest is one of good options.However, which key factors influence entrepreneurs to make decision finallywill give inspiration to those hometown-returning entrepreneurs who will investthere and the local governments which can improve capital-introducing policy, andoptimize the entrepreneurial environment. So, it is very necessary and meaningful toresearch this topic. Taking Beijing Dahua company as a study case, through combingthe Chinese and foreign literature, the writer conclude general factors: economicfactors, local entrepreneurship policy, situations of the industrial development,entrepreneurial environment and entrepreneurs’ emotions to hometown. These arethe important factors that affect entrepreneurs’ decision. And on this basis, I givesome constructive and practical advices to those hometown-returning entrepreneurswho will invest there and the local governments which need improvecapital-introducing policy, and optimize the entrepreneurial environment.