Government should encourage migrant workers to return to their hometowns to set up small businesses, said Zhou Jiagui, deputy director of Hubei Provincial Association of Small and Medium Enterprises while attending the on-going 11th National People's Congress, China's top legislature.

Speaking to reporters on the sidelines of the Congress, Zhou said "local governments should encourage migrant workers to become self-employed in their hometowns. Staying at home is better for the education of their children."

Major efforts should be devoted to developing township enterprises, which are powerful engines of job-creation. Governments can boost growth in China's lagging central and western regions by promoting economic development at the county level.

Zhou also suggested establishing specialized banks to provide financial services to small and medium enterprises in less developed regions, and called for new legislation to encourage self-employment to be introduced as soon as possible.

(China.org.cn by Yang Xi, March 17, 2008)