No the starter motor is not the generator, you have to have a separate generator as well, hooked into the chain with sprocket large enough to make it work. But not overly large. As far as the nut on the motor, It would take changing the motor cover plate to do it, and it would stick out from the motor and be in the way. but the stater motor I will be using is made to hook into a chain and just turns with the chain till you need it, further, with it between the engine and centrifugal clutch you could start on the fly, If the motor would die on you., because the chain on the clutch is not turning the motor if it stops running. Just freewheeling with the back tire. Plus you can mount it out of the way say under the motor and it will not be sticking out from the motor.
When I get my bike setup l will post it, I am not using a china motor. but is a american made motor. but still a 2 cycle. it can be mounted any way up or down because the Carburetor does not use a float. so that makes it easier to mount in tight places. it makes 3.5 horse and red lines at 9000 rpm. It is not a chain saw motor.