In recent years in southwest border villages, a large number of well-educated young people returning home with entrepreneurial enthusiasm have started businesses on short video platforms.In the context of rural revitalization, how much they identify with local culture and whether they are in good resonance with the short videos themselves is related to the psychological construction of the returning young people and whether they can stay and develop well.Using the Grounded Theory, this paper explores the mechanism under which ethnic minority entrepreneurs’ local cultural identity affects their short video self-presentation.From a macro perspective, ethnic minority entrepreneurs have different degrees of identification (or disapproval) of local culture from five categories: living environment, interpersonal communication, entrepreneurial production, rural customs, and ethnic culture, and evolve under the logic of “local cultural identity, views and values, behaviors, and self-presentation with short videos.”From a micro perspective, the dis-embedding “anti-native” psychology coexists with strong self-awareness. The local culture, as an element of digital emotional labor, is integrated into the “stage performance” of short videos, and the local knowledge is diffused and reconstructed in the interaction. The publicized self-presentation may lead to conflicts of local cultural identity, and there is a paradox between the crisis of local cultural identity and the self-presented “performance.” Therefore, it is suggested that the government should establish a homecoming driving mechanism based on cultural identity and value remodeling to better serve the psychological needs and sustainable entrepreneurship of the young returning ethnic minority entrepreneurs.