Abstract: In the process of migrant workers’decision making on whether to return home or stay in the immigrant city to start up their own businesses，there is a game playing over different interests among the migrant workers，workplace government，and their hometown government. To study the influence of both governments’ policies on the migrant workers’ selection of entrepreneurial location， this paper has constructed a dynamic game model of the two governments，the workers and hometown government，as well as the workers and the workplace government. Using the dynamic game theory，the paper has analyzed the relationship among the three parties. The result of the study suggests that both governments’dominant strategy is to give supportive policies to attract competent migrant workers to stay and start their businesses. Compared with the developed districts，the hometown government is at a disadvantage but its supportive policies may successively attract migrant workers to stay home since they can take the local advantages. On the other hand，the workplace has better market，information，and resources for start-ups. The dominant supportive policies are also encouraging to good migrant workers. So，both governments should foster their strengths when they make supportive policies and provide necessary conditions for the new entrepreneurs and help them reduce the cost.

Key words: migrant workers, returning home to start up business, staying in urban areas to start up business, government support business；government support