Small businesses have made a decisive contribution to the reconstruction and development of the German economy and society since World War II. The Federal Republic of Germany considers small-scale industry important and has granted tax relief and initiated a wide range of loan and guarantee programs for them. The Act against Restraints of Competition has proven its worth as a strong support for small business. Financial support is available to entrepreneurs through European Recovery Program loans, loans funded through the federal budget, joint federal and regional support, and research and development grants from the federal government. The promotion of small business is one of the priorities of German development aid. This involves support for small-scale craft and industrial business in Third World countries as part of German development projects, backing of cooperation between small German enterprises and their counterparts in developing countries, and formation of small business organizations in Third World nations. Improving the research situation of small- and medium-sized enterprises is a major goal of Bonn's research policy. Federal reforms of the health system, postal service, and statutory old-age pension scheme are intended to promote small business. The government also hopes to create more opportunities for the liberal professions through privatization. Special support for women is planned. (YLB)