Cause Studies On The Steady Progression Of German SMEs In The European Debt Crisis

Since 2008, the year of eruption of the global financial crisis, the European Union members such as Greece, Italy and Spain are trapped in the sovereign debt. The EU has suffered a lot from its declining economy. However, German economy stands out which draws much attention and concerns. There is no doubt that German economy has become the engine of the EU. During the process of crisis resolving, German even donates millions of Euros to assist those who are stuck in the crisis. When it comes to the reasons why Germany can achieve such an amazing economy outcome, SMEs must be strongly emphasized. As the main body of German national economy, SMEs are regarded as the heart of German market economy and the engine to promote economic growth and create more job positions. How can German SMEs keeps steady progression in the European debt crisis?Based on the documentary, case and interdisciplinary studies, this paper will make a detailed cause analysis of the German SMEs in the European debt crisis. First, the SMEs DNA are explained in the aspects of historical splitting, ethnic characteristics, the choices of economic model, labor market reform after WWII and German entrepreneurship. Then, several cases are applied to illustrate the decision-making strategies in the procession of SMEs. Last, policies support of economy, finance and taxation from the German federal government are concluded.There are three points from the perspectives of theoretical and practical significances. The first one is to update the demonstration studies of German SMEs in the European debt crisis through case studies and data statistics. The second one is to provide some implications for other countries’ SMEs which are sluggish in the financial crisis. The third is to urge the construction of national spirits and entrepreneurship by discussing the mutual promotion relationship between spirits and economy. This is also the shining point of this paper.