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Migrants look for business breaks
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Heavily hit by the global financial downturn, more and more migrants return home in hope of restarting their businesses. [Xinhua]



A survey by China's State Development Research Center shows increasing number of migrants are starting their own businesses. But the business of setting up a business can be problematic for some Forget the catchphrases "providing help for migrants-turned-startups" or "promoting self-employment among migrants." Migrant worker Tian Jin has found it almost impossible to benefit from well-intended phrases.

Tian's small business went bust in the financial crisis. He had returned home to Luodian County in Guizhou Province from the manufacturing hub of Yongkang in Zhejiang Province.

"I repaired tool machines in Yongkang in 2000. When I became skilled, I opened a small tool machine workshop myself. I ran it for six years and had eight workers at the peak," he says. "Business began to slump in 2007 and I lost 200,000 yuan (US$28,571) last year. So I closed it and sold the 150,000-yuan equipment for 10,000 yuan at the end of last year."

After returning home, Tian planned to build a factory to produce a local product, a kind of corn liquor, with his savings of 130,000 yuan.

"What else can I do here? I have asked others to take care of my farmland for free in the past and I'm not interested in ploughing any more," he says.

Tian spent most of his savings on building a three-story house which will be used as a factory.

Credit officers

With most of his savings spent, Tian had to apply for loans.

"I've been away from home for years and have little guanxi (connections) here. Most credit offices just told me they had no money to lend. Some refused, saying my building could not be mortgaged," he said. "All I need is 100,000 yuan to buy equipment."

The difficulties facing Tian are common for migrants who want to start a business.

A survey by the State Development Research Center shows increasing number of migrants are starting their own businesses. Before 1990, only 4 percent of migrant workers started businesses after returning home, the figure jumped to about 30 percent in the 1990s and then to about 65 percent from 2000 on.

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