Research On Countermeasures Against Financing Difficulties Of Hainan Provincial Small And Medium-sized Enterprises

Our nation is in the period of social structure adjustment and economic system transition. In the developing period of domestic middle and small-sized enterprises, there are mainly three phenomenons. First, they face the financial difficulties that also exist in the foreign middle and small-sized enterprises. Second, they possess the financial characteristics in the unique political and economic system. Third, they face the constraints brought by the absence of understanding in the financial principles around middle and small-sized enterprises. Hainan province is the relatively under-developed area in economics, where the middle and small-sized enterprises face the same or even worse financial difficulties. Properly solving the financial difficulties is critical for the upgrading of the industrial structure and the stable economic growth.This thesis aims to solve the financial difficulties of middle and small-sized enterprises in Hainan province, and propose some effective countermeasures. First, the definitions of middle and small-sized enterprises and finance related concepts are given; the mainstream theories for middle and small-sized enterprise financing are reviewed; the literature review on studies of domestic and foreign middle and small-sized enterprise financing is conducted. Then we introduce the current situations of Hainan middle and small-sized enterprises from the perspectives of intensive funding requirement, difficult financing situation, critical financing environment and the co-existence of innovation of financing pattern and private financing. We analyze the causes of financing difficulties in Hainan from the downturn of macro-economy, inadequate laws, high access threshold of financial institutes, poor enterprise management and low enterprise credibility. Finally, we summarize the principles for solving the financial difficulties of middle and small-sized enterprises in Hainan, and give countermeasures to resolve the financial difficulties from aspects of enterprise quality enhancement, more support for financial institutes, non-banking financial institutes and law regulation, respectively.