The survey involved 3,026 migrant workers-turned-businessmen and was carried out in 99 counties in China and published in February.

The success rate for migrants starting businesses, however, is relatively low.

In southwestern China's Chongqing, a survey by the local labor department in Kaixian County showed about 8 percent of migrants succeeded in starting businesses - the highest rate among all the counties in Chongqing, a key provider of migrant workers.

Migrant-turned-businessman Wang Chuyuan, manager of Kaixian County Yingjin Wool Co Ltd, said he had difficulties getting loans to buy new equipment though they had sufficient production orders and valuable fixed assets.

"The banks are unwilling to lend us loans, saying our workshop buildings could not be mortgaged," Wang said.

Financial support

Wang believes most migrants failed in business because they cannot raise enough money.

The deputy mayor of Chongqing, Huang Qifan, said the difficulty that migrants have in raising money is common for small and medium businesses and though measures have been taken to provide financial support, these are hard to implement.

China has reported millions of job losses because of the world economic downturn. At least 20 million migrant workers have been made unemployed in the economic crisis, said Chen Xiwen, director of the Office of the Central Leading Group on Rural Work in early February.

Premier Wen Jiabao encouraged self-employment for migrant workers in an online chat with the public on February 28 and stressed the importance of training and preferential tax policies for migrant workers.

Governments at different levels have been pulling an array of policy levers, including offering new business loans, to keep people earning money.

In central China's Henan Province, the provincial government has set aside 1.5 billion yuan in small loans for peasants to start businesses.

In northern China's Inner Mongolia Autonomous Region, the government expanded the coverage of its small loans from those laid-off from the cities to the peasants. The small loans range from 50,000 yuan to 100,000 yuan.

In central China's Hunan Province and eastern China's Shandong Province, farmers who want to start businesses can enjoy tax or fee breaks for three years.

Other provinces that are home to large numbers of migrants, such as Sichuan and Anhui, have promised similar assistance.

Experts warn that the measures should be more practical. "Some may be too superficial and not meet the needs of migrants effectively, some are too complicated to be implemented," said Wang Chunguang, a researcher on migrants with the Chinese Academy of Social Sciences.

In southwestern China's Guizhou Province, a survey by the local labor department in Zunyi showed that 90 percent of the migrant workers who returned home and wanted to start a business failed to get loans from financial institutions.

Effective loans

This is the biggest impediment for farmers starting businesses, said Ju Hong, head of the labor department in Zunyi.

"Only loans can save me. With loans, I could launch my project and produce local corn wine as I planned. Without loans, I cannot invest in my business any further and it will be even harder for me to support my family of six," said Tian.

Many revenue-hungry governments not only fail to provide effective loans for peasants, but also impose heavy fees on them, said Ju.

"In some revenue-hungry counties, farmers who want to start businesses may have to get permits first, for land, capital, environmental protection, fire safety and so on. Every permit means they have to pay fees, adding another burden to those who want to start a business," Ju said.

Nie Xiuli, head of the countryside development institute at the Guizhou Provincial Academy of Social Sciences, said local governments need to implement policies that encourage migrant workers to start businesses. "They should focus on action rather than talking or promoting policies," she said.

As well as the financial crisis, a major force that drives migrants home to start businesses is the permanent residency system which prevents them from settling in cities.