Abstract Of all the states, Kerala is reported to have highest proportion of migrants and return migrants in India. Even though migration from Kerala recently shows a decreasing trend, the glamour associated with Gulf migration is still very strong among the Kerala youngsters. This is an important positive factor in their decision to emigrate instead of working in the state. The number of Kerala migrants as estimated by the migration survey in 2014 is 23.63 lakhs. Along with the increase in migration, the number of return migrants has also increased. The number of return emigrants (REM) to Kerala in 2014 was 12.48 lakhs, which is about 52 percent of the number of migrants. Return Migration is considered as the final stage of migration process. From the review of literature it is found that majority of the return emigrants preferring self employment activities after return. Therefore this paper examines the factors affecting self employment choice or decision to be an entrepreneur upon their return from Middle East employment by using 328 return emigrants samples collected during 2014 from Malappuram and Palakkad districts in Kerala. We applied binary probit method for analysis. Results show that return emigrants are more likely to be self employed after their return. The results reveal that, pre-emigration self employment experiences return savings and emigration experiences increase the likelihood for return emigrants to become entrepreneur after return. These findings suggest that, return emigration can help to give a new life to economic growth process of a developing country like India, and repatriated capital is a key, stimulating factor in promoting rural entrepreneurial activities.