THE EXPERIENCE OF GERMANY IN DEVELOPING SMALL AND MEDIUM ENTERPRISES
DOI:
https://doi.org/10.5281/zenodo.18063077Keywords:
small business, government support, experience of developed countries, institutional mechanisms, financing, economic stabilityAbstract
This article provides a systematic analysis of the institutional, financial, and organizational mechanisms
supporting small and medium-sized enterprises (SMEs) in Germany. The primary objective of the study is to identify
effective government policy instruments aimed at fostering SME development by examining Germany’s experience and
to assess their economic outcomes.
The analysis demonstrates that SME support in Germany is implemented through a comprehensive and long-term policy
framework characterized by strong public–private partnerships, a stable and transparent institutional environment, and
diversified financing mechanisms. Key instruments include development banking through KfW, credit guarantee schemes,
innovation and investment support programs, and market-based scale-up finance tools. These mechanisms play a crucial
role in enhancing the competitiveness of SMEs, promoting innovation, expanding employment opportunities, and ensuring
sustainable economic growth.
Furthermore, the article explores the potential for adapting Germany’s SME development model to the context of
developing economies, with particular emphasis on Uzbekistan. Based on the analysis, practical policy recommendations
are proposed to improve access to finance, strengthen institutional capacity, and support innovation-driven growth among
SMEs. The findings suggest that selective and context-sensitive adaptation of Germany’s experience can significantly
contribute to the sustainable development of the SME sector in emerging economies
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