Policy cognition and return-home entrepreneurial intention: evidence from China

Rural migrant workers’ hometown entrepreneurship – a process through which labourers return to their rural origins to establish businesses – serves as a critical mechanism for bridging urban – rural disparities and mitigating economic losses in rural communities. These individuals act as vital conduits for transferring capital, technology, and entrepreneurial expertise to underserved regions. Grounded in social cognitive theory, which posits that individual behaviour emerges from the dynamic interplay of personal cognition, environmental factors, and behavioural outcomes, this study investigates how policy awareness shapes return-home entrepreneurial intention among migrant workers. Based on a questionnaire survey of 405 rural migrant workers from China, this study found that policy cognition related to rural migrant workers’ entrepreneurship in their hometowns can positively influence their intention to engage in such activities via their trust in the government. Notably, urban work pressure intensifies the positive relationship between policy cognition and entrepreneurial intention, suggesting that policy responsiveness becomes more impactful for individuals facing acute urban challenges. This research integrates institutional trust and contextual stressors into the analysis of entrepreneurial decision-making, offering new insights into how policy environments interact with individual cognitive processes.