( CNN ) -- As the eurozone 's financial crisis drags past its second year , Germany 's powerhouse economy has kept the bloc from sinking into a double dip recession . A quiet force behind this growth are the country 's 3.5 million small and medium sized businesses , collectively known as Mittelstand . Mittelstand companies can be found behind hard to imitate niche products for the manufacturing and engineering markets . They have played a vital role in the country 's export driven economy for over a century . Read more : Juliet Mann 's blog on the Mittlestand . While latest economic data suggests even Germany is being weighed down by the crisis , that could be offset by the Mittelstand 's philosophy of longevity , innovation and investment in their workforce . Such an outlook has helped to foster community loyalty , which has kept the Mittelstand steady through economic fluctuations . The Mittelstand often have longstanding apprentice schemes , and German universities work closely with researchers at local firms to ensure products are always improved . Pencil maker Faber Castell is one such company . They do not chase quick profits or high risk investments , and invest in their people . `` Partially it is simply being far-sighted and smart , '' said Count Anton Wolfgang von Faber Castell , chairman and chief executive of the company which bears his name . Faber Castell has been making pencils on the outskirts of Nuremberg since 1761 and today they produce one sixth of the entire world 's pencils . `` We have a product which causes a yawn , pencils . But we have to stick to it and we have to try within this framework to improve , to constantly optimize the product . If you have the curiosity , you have the right people , you will always find things to improve , '' he said .
The Mittelstand is the German name for the country 's 3.5 million small and medium sized businesses . These often family owned companies currently make up around 60 % of the German workforce . Most Mittelstand companies tend to produce niche products for the manufacturing and engineering markets .