In order to speed up the establishment of multi-level, diverse pattern of farmers returning home and starting up businesses, and fully stimulating the enthusiasm of rural migrant workers, the government introduced a series of policies to promote farmers' entrepreneurship and innovation. The introduction and implementation of the policies drove various industries to create more nearby employment opportunities, and allowed farmers to comprehensively join the new trend of public entrepreneurship and innovation as important subjects of entrepreneurship.
1. Comprehensive guiding policies Encouraged labor input regions to counterpart-assist output regions in setting up industrial parks in the process of industrial upgrading, guided the transfer of labor-intensive industries，vigorously developed relevant supporting industries, and drove rural migrant workers, and others to return home and start up businesses. Encouraged personnel including rural migrant workers who had successfully started up businesses to follow the trend and fashion of industrial transfer, fully tap and utilize comparative advantages of output regions in resources and factors, and relocate proper industries at hometown and start up and develop.
1) Promoted industrial upgrading of output regions to drive returning home and starting up businesses. Encouraged personnel such rural migrant workers who had accumulated certain capital, technology and management experience to learn from developed regions on industrial organizational method and operation and management method, follow the consumption structure and market need of industrial structure upgrading at output regions，grasp the opportunity to start up and develop businesses, and upgrade small workshops into specialty shops, chain shops and brand shops.
2) Encouraged resources at output regions to connect with market of input regions to drive returning home and starting up businesses. Encouraged personnel including rural migrant workers to play the advantages of dual familiarity of the market of input regions and the resources of output regions, utilize Internet Plus information technology to develop modern commerce, and via exploiting, upgrading, and branding of characteristic products of output regions such as ethnic minority's traditional handicrafts and green agro-products, realize the connection between products from output regions and market of input regions.
3) Guided integrated development of primary, secondary and tertiary industries to drive returning home and starting up businesses. Planed as a whole and developed county economy, guided returned rural migrant workers and other people to integrate into regional specialized markets, demonstration areas and block economy, and create advantageous industrial cluster with regional features. Encouraged returned personnel with good entrepreneurial basis, strong entrepreneurial ability to fully explore the potential value of villages, rural land and countryside atmosphere, develop leisure agriculture, forest economy and rural tourism, promote integrated development of rural primary, secondary and tertiary industries, and expand business space. With the platform of ethnic minority characteristic villages, vigorously developed folk customs tourism, and drove the entrepreneurship in ethnic minority areas.
4) Supported the development of new-type agricultural operating entities to drive returning home and starting up businesses. Encouraged personnel who returned hometown to co-establish new-type agricultural operating entities including farmers，cooperatives, family farms, agricultural industrialized leading enterprises, and forest farms, to focus on scale planting and breeding, agro-products processing, rural service industry and agricultural technology popularization, forest economy, trade marketing, agricultural materials distribution, information consultation, among others, to co-build marketing channels, co-create characteristic brands, and cooperate in spreading market risks.
5) Relied on the integrated development of stock resources to drive returning home and starting up businesses. Each region should base on investigation and analysis of overall situation and basic needs of rural migrant workers and other personnel who returned home to start up businesses, in combination with the practical needs to promote the synchronous development of new-type industrialization, informatization, urbanization, agricultural modernization and greenization, make arrangements for the layout of innovation parks for rural migrant workers who returned home to start up businesses. Relied on various compliance development parks and agricultural industrial parks, revitalized existing stock resources including idle plants, supported and guided regions to integrate and develop a batch of incubation bases for personnel who returned home to start up businesses, mainly facing seed cultivation in early stage, guided innovation parks for returned personnel that saw cluster development of early and middle stage startups, concentrated entrepreneurship elements and lowered entrepreneurship cost. Explored the utilization potential of existing property facilities, integrated and utilized stock resources such as scattered space, and paid attention to integration with urban-rural infrastructure construction, e-commerce development and improvement of logistics infrastructure, and beyond. In terms of innovation parks for rural migrant workers who returned home that fell into the non-agricultural category, each region should follow the requirements of urban and rural planning, and carry out development and construction of them in combination with old town or village transformation, rural collective business construction land or rural homestead consolidation. In terms of innovation parks that fell into the category of agriculture, forestry, animal husbandry, and fishery industry, under the premise of not changing the ownership and function of land, collective forest, grassland and water, construction party was allowed to integrate resources and carry out development and construction via signing contract with the ownership party. In combination with urban and rural regional features, established collaborative business-starting model with market competiveness, and formed entrepreneur alliance of returned personnel with various characteristics. Guided returned personnel to integrate into characteristic specialized markets, and created entrepreneur cluster and advantageous industrial cluster with regional features. Implemented in-depth the action of starting up business and benefiting people among rural young people, supported entrepreneur personnel who returned home to adjust measures to local conditions, and focus on leisure agriculture, agro-products intensive processing, rural tourism and rural service industry to start up businesses, and improved the development environment for new-type agricultural operating entities such as family farms.
6) Cultivated public platform for entrepreneurship and innovation. Vigorously developed science and technology service industries including technology transfer and transformation, science and technology finance, certification and recognition, and inspection and testing, summarized and promoted new-type incubation models including entrepreneur space, start-up coffees, and innovation works, and sped up the development of market-oriented, specialized, integrated and networked public entrepreneurship space.
7) Encouraged rural labor force to start up businesses. Supported rural migrant workers to return home and start up businesses, develop new-type agricultural operating entities such as farmers' cooperatives and family farms, and implemented policies on targeted tax cuts and universal fee reduction. Relied on stock resources such as various existing parks, integrated and set up a batch of entrepreneur parks for rural migrant workers who returned home, and enhanced financial support and financial service. Combining the entrepreneur of farmers with developing country economy, vigorously developed labor-intensive industrial projects including agro-products processing, leisure agriculture, rural tourism and rural service industry, and promoted the integration of primary, secondary and tertiary industries in rural areas. Relied on public platforms including grass-roots employment and social security service facility, and provided entrepreneur guidance and services. Encouraged various companies and social organizations to utilize existing resources, set up a batch of agricultural entrepreneurship and innovation demonstration bases and training bases, and trained a group of tutors for farmers5 entrepreneurship and innovation. Supported farmers to start up online businesses, vigorously developed Internet Plus and ecommerce, actively organized the connection of farmers with entrepreneurship and innovation and companies, moderately prosperous villages, markets and parks, and promoted the action of starting up businesses and benefiting farmers among rural young people.
8) Supported farmers'cooperatives to build up facilities for agro-products processing, storage, and cold-chain logistics. Allowed assets formed by financial subsidies to be transferred into the hands and management of farmers' cooperatives. Encouraged personnel including rural migrant workers who entered cities and graduates from vocational colleges to return home and start up businesses, and carried out modern young farm owners plan and rural practical talents training plan.
9) Launched one-million-entrepreneur project on rural tourism. Via enhancing policy guidance and professional training, in three years, a million rural migrant workers were guided and supported, college graduates and professional technical personnel, among others, to return home and start up their own businesses via developing rural tourism.
10) For large-scale grain operating entities and agricultural machinery cooperatives, gave priority in agricultural machinery purchase subsidies; implemented subsidy for agricultural machinery operation, and through the method of purchasing social service, encouraged agricultural machinery service organizations including large agricultural machinery household, and agricultural machinery cooperatives to undertake operation tasks of category specified by the nation. Innovated and promoted the development of farmers cooperatives. Further reinforced the support for farmers，cooperatives, offered priority support for the development of cooperatives with large-scale production such as grain. Assisted the development of family farms and large planting and breeding households.
2. Policy of lowering threshold Deepened reform in commercial system, implemented reform in the registration system of registered capital, optimized registration method of returning home and starting up businesses, simplified registration procedure of entrepreneurship residence (business location), and promoted residence registration system reform of one address multiple licenses, and cluster registration. Broadened the scope of businesses, and encouraged personnel including returned rural migrant workers to invest in rural infrastructure and start up various businesses in the countryside. For government dominant and financially supported rural public welfare projects, can adopt methods such as purchasing services and government and social capital cooperation, and guide companies and social organizations founded by rural migrant workers, among others, to participate in construction, management and operation. For rural service industries that are capable of commercial operation, they can be fully open to social capital. Enacted directory of encouraging social capital to join rural construction, explored the establishment of directory of village and town government function transfer, encouraged personnel who returned home to start up businesses to take part in the construction or undertake public service projects, and supported companies founded by returned personnel to join government procurement. Included personnel who returned home to start up businesses such as rural migrant workers into social credit system, set up and completed market trading rales and service supervision system for returning home and starting up businesses, and promoted the improvement of public management level and reduction of transaction cost. Eliminating or delegating administrative licensing examination and approval matters that involved returning home and starting up businesses, comprehensively cleaned up and practically canceled nonadministrative such matters, and reduced pre-approval for investment projects of returning home and starting up businesses.
3. Policies on tax cuts and fee reduction For eligible personnel who returned home to start up businesses including rural migrant workers, they apply to Notice of Income Tax Preferential Policies for Small Scale and Small Profit Enterprises (fiscal and taxation document 2015 No. 34), Notice on Further Supporting Value Added Tax and Business Tax Policies of Small and Micro Enterprises (fiscal and taxation document 2014 No. 71), Notice of Exemption of Relevant Government Fund for Small Enterprises (fiscal and taxation document 2014 No. 122) by Ministry of Finance and State Administration of Taxation, and Notice by Ministry of Human Resources and Social Security and Ministry of Finance on Relevant Issues of Adjusting Unemployment Insurance Rates (Ministry of Human Resources and Social Security issued 2015 No. 24), and enjoy tax and fee reduction policies including exemption of corporate income tax, exemption of value added tax, reducing or exemption of business tax, additional education fee, additional fee of local education, water conservancy construction fund, cultural undertakings development fee, and employment security fund for the disabled, and reducing of unemployment insurance fee. Each level of financial, taxation, human resources and social security departments should work closely, strictly follow the policies and regulations above and the requirement of State Council's Notice on Relevant Matters of Preferential Policies Including Taxation (State Council issued 2015 No. 25)，practically focus on work implementation, and ensure good implementation of preferential policies.
Implemented various taxation preferential policies that support the development of small and micro enterprises. Implemented tax taxation preferential policies including additional deduction of research and development fees of science and technology enterprise incubators and college science and technology parks, and accelerated depreciation of fixed assets. For eligible new-type incubators such as public entrepreneur space, tax preferential policies for science and technology enterprise incubators can apply. According to the direction and requirement of tax reform, planned as a whole and research relevant tax support policies, for investment on innovative activities that goes for the seed period and early stage including angel investment. Enacted and improved the certification method of high and new technology enterprises, and improved tax credit policy of 70 percent of taxable income for entrepreneur investment companies. Grasped the chance to promote tax pilot policies at Zhongguancun national independent innovation demonstration area, and promoted pilot policies of installment of individual income tax for companies' transformed and added equity, and installment of individual income tax for equity incentives to the whole nation. Implemented entrepreneur and employment promotion taxation policies for college graduates, the disabled, veterans and registered unemployed personnel. From Jan. 1, 2015 to Dec. 31, 2017, for small-scale and small-profit enterprises with taxable income less than 200 000 yuan (including 200 000 yuan), their taxable income will be reduced to half, and with a 20 percent rate for corporate income tax. For eligible small-scale and small-profit enterprises, regardless of audit collection and standard collection method, they can enjoy preferential policies of corporate income tax for small-scale and small-profit enterprises. The situation where an individual makes an investment with non-monetary assets should be identified as the synchronous occurrence of non-monetary assets transfer and investment. For income from individual transfer of non-monetary assets, should follow the program of Asset Transfer Income, and calculate and pay individual income tax in accordance with law. For individuals who make investment with non-monetary assets, should determine the asset transfer income according to evaluated fair value. Taxable income is the balance of non-monetary assets transfer income, deducted by original value of the assets and reasonable tax. For individuals who make investment with non-monetary assets, they should determine the realization of assets transfer income at the time of transfer and obtaining the equity of invested enterprises.
4. Financial support policies Fully played the leverage guidance role of financial capital, and enhanced financial support for those returning home to start up businesses. For eligible new-type agricultural operating entities created by returned personnel such rural migrant workers, they can receive same corresponding policy support according to regulations. For companies created by returned personnel such rural migrant workers, and hired personnel with employment difficulty and college graduates in the year of graduation, offered them social insurance subsidies according to regulations. For eligible personnel with employment difficulty, and engaged in flexible employment, they were offered certain social insurance subsidies. For those eligible for other supporting policies, such as various funds for supporting agriculture and benefiting farmers, and small and micro enterprises development fund, should timely include them into supporting scope, make it convenient to apply, simplify review and approval procedures, and set up and complete online information verification mechanism for policy beneficiaries. Online shops practitioners registered at industrial and commercial bureau enjoy the same supporting policies on employment and business starting; For online shop practitioners not registered at industrial and commercial bureau, they can be identified as flexible employment personnel, and enjoy corresponding supporting policies.
Intensified the guidance of financial capital. Via special fund for the development of small and medium sized enterprises, utilizing the methods including phased stock holdings risk subsidy and investment guarantee, guided venture investment institutions to invest in early-stage science and technology small and medium sized enterprises. Played the role of national emerging industry venture investment guiding fund in leading social capital, and focused on supporting the development of early and middle stage strategic emerging industry and high technology industry and early-stage innovative enterprises. Played role of national science and technology achievement transfer guiding fund, comprehensively utilized the methods including setting up venture investment sub-fund, loan risk compensation and performance rewarding, and promoted the transfer and transformation of science and technology achievements. Played the leveraging role of fiscal capital, and via market mechanism, guided social capital and financial capital to support entrepreneur activities. Played the role of fiscal and taxation policy in supporting the development of angel investment and venture investment, cultivated and developed angel investment group, and promoted public innovation and entrepreneurship.
5. Financial service policies Enhanced government guidance, utilized venture investment fund, and enhanced financial service for those returning home to start up businesses. Reinforced government guidance, utilized venture investment fund, and attracted social capital to enhance supports for early and middle stages of business starting for personnel including rural migrant workers. In regions with relatively concentrated returning home and business starting, with prominent industrial characteristics, explored the issuing of special collection bonds for micro, small and medium sized enterprises, and corporate bonds，launched pilot programs for equity crowd funding financing, and expanded the scale of direct financing. Further enhanced the financing availability of returning home and starting up businesses, sped up the development of medium and small financing organizations such as village and town banks and rural credit cooperatives, and small loan companies, improved credit evaluation mechanism for returning home and starting up businesses, expanded the scope of mortgaged property, encouraged financial organizations in banking industry to develop financial products and service that meet the needs of business starting for returned personnel including rural migrant workers, and enhanced the credit support and service for returning home and starting up businesses. Vigorously developed rural inclusive finance, guided and increased the input of agricultural fund, utilized relevant policy measures of finance serving the development of agriculture, rural areas and farmers, and supported rural migrant workers, among others, to return home and start up businesses. Implemented secured loan policy for business starting, optimized loan review and approval procedures, and for eligible returned entrepreneur personnel, financial departments arrange subsidized loan interest fund in accordance with regulations. Adjusted small guaranteed loans to startup guaranteed loans, aimed at key groups and difficult personnel of employment with certain startup needs, certain startup conditions but in lack of startup capital, improved the availability of financial services, specified objects, standards and conditions of supporting, and maximum loan amount was adjusted from 50 000 yuan, 80 000 yuan, and 100 000 yuan for different groups to a unified 100 000 yuan. Encouraged financial organizations to refer to loan base rate, in combination with risk sharing situation, reasonably determine loan interest rate, and for startup guaranteed loan for individuals, they can enjoy fiscal interest discount if it's within 3 floating percentage points of loan basis interest.
Improved startup investment and financing mechanism. Played the role of multi-level capital market, and provided comprehensive financial service for innovative enterprises. Launched pilot projects for Internet equity crowd funding financing, and intensified service capacity of crowd funding for public entrepreneurship and innovation. Standardized and developed regional equity markets serving small and micro enterprises, promoted the financing of science and technology startups, and improved the mechanism of startup investment, angel investment exit and transfer. Encouraged financial organizations in banking industry to establish branches or transform some of their existing branches, serving as specialized or characteristic branches providing financial services for science and technology medium and small sized enterprises, and provide financial services by ways of science and technology financing guarantee, intellectual property pledge, and equity pledge.
6. Startup park policies Construction capital of startup parks for returned rural migrant workers is self raised by the construction party; for those parks constructed via land leasing, formed fixed assets belong to the construction party; property management earnings are distributed based on relevant contracts. For integrated development of startup parks for returned rural migrant workers, local governments can, under the premises of not adding the total scale of fiscal budget spending and not changing the function of special fund, properly adjust expenditure structure, arrange corresponding fiscal guiding capital, and offer policy support in proper methods such as investment subsidy and loan interest subsidy. Encouraged financial organizations, on the basis of effective risk prevention, to actively innovate on financial products and service methods, and enhanced financial support in aspects such as infrastructure construction and industrial cluster development for these startup parks. Relevant parties can arrange corresponding projects to offer counterpart support, and help startup parks improving infrastructures including water, electricity, transportation, logistics, communication and broadband Internet. Properly loosened the standards of electricity, water, and land usage, and attracted more personnel returning home to enter the parks and start up businesses.
7. Agricultural and rural industrial policy support Enjoy a series of existing policy measures that strengthen, benefit and enrich agriculture, rural areas and farmers, and policies of financial support, and agro-product initial processing facility subsidy policy, agricultural technology demonstration and popularization, new-type professional farmer training project, leisure agricultural demonstration construction, among policies in force, should be favorable to groups who returned home to start up businesses. Actively supported eligible personnel who returned home to start up business in applying for relevant agricultural supporting fund and medium and small sized enterprises development special fund according to procedures. Supported farmers' cooperatives to build agro-products processing, storage, cold-chain logistics facilities, and allowed assets formed by fiscal subsidies to be transferred into the hands and management of farmers' cooperatives. Implemented modern young farm owner plan and rural practical talents training plan. Farmers who start up businesses enjoy the same taxation preferential policies with other entrepreneurs, and eligible rural workers can enjoy government preferential policies on promoting businesses starting up and driving employment according to regulations. For those eligible for Agro-products Taxation Scope Notes (fiscal and taxation 1995 No. 52), they can enjoy
13percent preferential value-added tax, and for those eligible for piloting (fiscal and taxation 2012 No. 38)，use taxpayers’ applicable tax rate when they resell products. For those engaged in agriculture, forestry, animal husbandry and fishery industry, they can be exempted from or reduced in corporate income tax, including income from some of the agro-product preliminary processing projects. Construction land from idle homestead sorting could be used in leisure agriculture, and it’s encouraged the utilization of four types of wasteland (barren hills, waste valleys, barren hillocks, and desert tidal flats) to develop leisure agriculture. Played the advantages of sand industry and enthusiasm of farmers and herdsmen, supported sandy areas to establish cooperatives and associations, strove to increase the employment of farmers and herdsmen, enhanced credit loan support, and carefully implemented relevant preferential taxation and insurance policies.
8. Public service policies Emphasized on rural talents, returned rural migrant workers, veterans and college graduates serving as village officials and agro-product processing industry, leisure agriculture, folk customs and ethnic craft industry and rural service industry, set up and completed service system for farmers innovation and starting up, including startup bases, training, tutoring, technology and financing, incubated and cultivated a large batch of rural small and micro enterprises, motivated the innovation vitality and entrepreneur potential of hundreds of millions of farmers, and built new engine for agricultural and rural economic development. Actively created policy environment for farmers’ innovation and business starting, strove to build relevant platform, vigorously trained leaders and tutors，summarized and popularized innovative models and experiences, and further improved service system for farmers，entrepreneurial innovation. With rural young people as main body, counties (cities) and villages (towns) as key regions, supported rural young people to establish or lead the establishment of family farms, farmers, cooperatives and small and micro enterprises, among others, developed rural primary, secondary and tertiary industries including facility agriculture, scale planting and breeding, agro-product processing, folk customs and ethnic crafts products, leisure agriculture and rural tourism, agro-product circulation and e-commerce, pension and housekeeping service, means of production supply service. For ethnic minority masses of farmers and herdsman, launched training on protection and development of ethnic minority traditional arts and crafts.
