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COVID‐19 pandemic destroyed lives and the global economy, and in the wake left businesses struggling to re‐open in urban China. The Chinese party‐state implemented fiscal reforms targeted towards small businesses, however little research has evaluated business’ understanding of policies and implementation, particular to the focus on rural migrant entrepreneurs. Therefore, we conducted an ethnographic case study including in‐depth interviews to determine to what extent rural migrant micro‐entrepreneurs understand and adopt COVID‐19 business support policies at two retail markets in Shanghai amid a pandemic. Applying an inductive grounded theory approach, the data demonstrated participants believe policies are legitimate but not for me because I am getihu by myself. We maintain their understanding is a legacy of hukou and is confirmed through the theory of validation including recognition through agreement with significant others including other entrepreneurs and family; corroboration with life experiences in Shanghai; and resonance of their migration story as self‐sufficient entrepreneurs surviving with their own capabilities. They have a degree of certainty their understanding is fact because it has been repeatedly validated through life experiences of a migrant lacking hukou in Shanghai. The study encourages consideration for the migrant entrepreneur context and has important practical implications for policymakers.

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