Do the spread of the Internet and E-commerce in the rural region help reduce the “digital divide” between urban and rural areas？ Drawing on a national survey of return migrant entrepreneurs in 2019， it examined the effects of E-commerce on business performance of return migrant entrepreneurs. The result shows that E-commerce significantly improves the performance of new ventures created by return migrants. This conclusion is still valid after endogenous problems have been carefully addressed. E-commerce reduces the urban-rural digital divide， but enlarges the digital divide among return migrant entrepreneurs. It is also found E-commerce improves the new venture performance by enhancing policy information acquisition advantages， expanding the network of market relationships， and strengthening risk-bearing capabilities. In addition， E-commerce has a greater effect on the performance of new ventures in the central and western regions， medium-and-large sized， and in the primary and secondary industries. Relevant government departments should continue to facilitate Internet technology innovation， expand the Internet penetration rate in rural areas of the central and western regions， and strengthen E-commerce training for small businesses， which will promote high-quality rural economic development and reduce the “digital divide” among different entrepreneurs， enterprises， industries and regions.