Abstract: Promoting the urban settlement of returning migrant laborers, embarking on their entrepreneurial ventures, is integral to advancing the new urbanization paradigm. This research harnessed survey data from 388 migrant laborers who initiated businesses in poverty-stricken counties in the western regions and applied the entropy method to assign values to each facet of family capital. Following this, a comprehensive score calculation was executed and an empirical study conducted to understand the influence of migrant workers’ family capital on their urban settlement propensity. Analyses revealed that copious family capital significantly amplified the migrant workers’ inclination towards urban resettlement. Supplementary investigations illustrated how laborers, endowed with substantial family capital, enhanced their income via entrepreneurial endeavors, thereby amplifying their urban migration desires. Moreover, entrepreneurial experiences mitigated the migration inclination disparities amongst laborers varying in family capital accumulation, revealing a negative moderating function between family capital and migrant worker resettlement intent. This analysis thereby proffered pragmatic recommendations to augment the human, social, and economic capital of migrant households, optimized the entrepreneurial atmosphere, thus these suggestions fostered entrepreneurial performance enhancement for returning migrant laborers, and facilitated their aspirations for urban resettlement.