File photo: VCG

During the past few decades, China has experienced remarkable economic growth, making considerable contributions to the world economy. In the process, a significant number of rural surplus laborers have migrated to cities, driving industrialization and urban development.

China has taken extensive efforts to ramp up rural development, helping improve the environment and public services there. The efforts have generated plentiful investment and job opportunities. As a result, an increasing number of young people are voluntarily choosing to return to rural areas.

In recent years, the number of people returning to rural hometowns or moving to rural areas to start businesses has continued to grow. According to statistics from the Chinese Ministry of Agriculture and Rural Affairs, from 2012 to 2022, the total number of people starting businesses in rural hometowns reached 12.2 million.

Although many only started with a small and micro business, 80 percent of them earned more from their businesses than they did as migrant workers in cities. On average, each returning entrepreneur now hires 5-6 employees. The proportion of college graduates choosing to start businesses in rural areas is also increasing.

Rural entrepreneurship and employment are constantly expanding. A recent survey showed that about one-fourth of returning entrepreneurs have already started their own business before returning to hometowns. Returning entrepreneurs have embraced innovation in their business endeavors, by introducing new products and services, innovating business models, expanding into new markets, and utilizing new technologies.

Improved communication infrastructure in rural areas has created significant opportunities for employment and entrepreneurship. In 2011, China's urbanization rate exceeded 50 percent for the first time, reaching 51.27 percent, entering a new stage of urbanization. After China's urbanization rate exceeded 50 percent, new opportunities for starting businesses in rural areas have emerged, aided with digital transformation. 

With the continued optimization of the rural environment and integration of new technology, rural industrial transformation is taking place through various means, such as the optimizing allocation of various factors of production, strengthening core capabilities, advancement of major services, and the innovation of sales and production processes.

According to statistics, about 55 percent of rural entrepreneurs leverage information technology, by launching online stores, conducting live-streaming sales, contactless fast delivery and more.

The rising trend of young people returning to rural hometowns to start new businesses has provided momentum for China's rural revitalization. With the continuous advancement of rural reform and tech innovation, the diversified investment mechanism for rural revitalization is gradually improving, and the returnees are increasingly participating in rural construction and rural governance.

Returning to rural hometowns to open new businesses is the inevitable result of the flow of the vast rural laborers and the integrated development of urban and rural areas in the country.

China's promotion of coordinated new urbanization and comprehensive rural revitalization not only fits the stage characteristics of urban-rural integration development, but also complements and enriches global rural development practices. 

The Organization for Economic Co-operation and Development (OECD) has increasingly focused on rural growth and employment, implementing the Local Employment and Economic Development (LEED Program) aimed at improving the competitiveness and social inclusiveness of all communities. China's innovative practices tailored to local conditions have provided new contributions to development issues of concern for the international community.

The future holds great potential for young people returning to and starting businesses in their hometowns. The success stories of many young entrepreneurs who have returned to their hometowns have served as good examples for others. 

Meanwhile, government also provides various forms of support for those who choose to start businesses in their hometowns. A survey shows that 44.6 percent of returning entrepreneurs have received government support, including financial assistance, entrepreneurship training and counseling, information consultation services, and fiscal incentives.

In 2020, the National Development and Reform Commission and 19 other government departments jointly issued a guideline to promote high-quality development of rural businesses set up by returning migrant workers, which sets a goal to create a number of industrial parks and demonstration areas for rural entrepreneurs before 2025.

In the future, with the support of more proactive government policies, the entrepreneurial environment in China's rural areas will continue to improve, and more entrepreneurial opportunities will emerge. This will lead to more people returning to rural hometowns and contributing to rural revitalization.

Zhang Haipeng is vice director of Rural Development Institute, Chinese Academy of Social Sciences. Wang Yu is associate research fellow of Rural Development Institute, Chinese Academy of Social Sciences. bizopinion@globaltimes.com.cn