Mechanisms of State Support for Small and Medium-Sized Enterprises in Germany

The study of mechanisms for supporting small and medium-sized businesses in the Federal Republic of Germany is of particular interest due to the fact that this sector plays an important role for the economic growth of the state. The characteristics of government programs for regulating small and medium-sized businesses is the key problem of the study. The sources of study are government and financial programs, private initiatives of associations of German entrepreneurs, forms of activity of private investment funds to stimulate small and medium-sized businesses in Germany. The theoretical basis was made up of scientific works in the field of analysis of experience, mechanisms of state support in foreign countries, problems and prospects for the development of small and medium-sized businesses by German and Russian authors. The article describes a number of government programs and laws that influenced the development of this business sector, the activities of state or non-state institutions that provide financial support, advice, and legal assistance to entrepreneurs (business centers, technology centers and incubators). The basic principles of organizing and supporting business are considered - the principles of consistency, proportionality, legal certainty. Examples of mechanisms for supporting small and medium-sized businesses in Germany are given: benefits and government support measures provided for by law, special grants that support promising startups, etc. Using analytical materials, statistics and scientific publications, the authors examine relevant challenges facing the small and medium-sized enterprise sector, which is considered an important element of the success of the German economy. It brings together small and medium-sized enterprises, which for the most part combine high innovation with the prospect of increasing their positions in the international market and great social responsibility. The practical significance lies in the fact that the described mechanisms for the development of the sector may be relevant for adaptation both in Russia and in other countries. In conclusion, the importance of the role of the state in promoting innovation, mechanisms of state regulation of small and medium-sized businesses for the further economic growth of the country's GDP is emphasized.