any suggestion on what small business should i start in kunming.

If you are new to Kunming, and especially if you are new to China, and have no connections (Guanxi), your options are limited.

Opening a bar or restaurant can be difficult to do legally, it can take years to get the correct permits.

Unless it is your Chinese family, don't have a Chinese business partner. There is not real sense of business ethics in China. I know several Chinese nationals who have been ripped off by local partners. The stories of foreigners being ripped off are manifold.

If you are going to set up a company, one of the few options truly open to foreigners is some kind of consultancy. The most common consultancies are for trade or education. The former is a possibility if you can find western companies who need a bridge to Kunming, or if you can find western customers for Kunming products. The latter being teaching or training, as you need a license to be a school.

To set up and register a company you need at least 100 000 rmb, that would be a local company that would need a local/Chinese figurehead. I am not sure how much money you need for a WFOE (Wholly Foreign Owned Enterprise (pronounced Woofee) currently.