Suri was like this when we first had her and she has never been hit or yelled at. My breeder and I use positive reinforcement also. I notice she started doing it when people would overwhelm her. She is 2 pounds (now and 1 pound then) and people would just come up to her and try to pick her up and were just not use to having a small dog. Ifi have visitors I ask them to sit down and let her come to them and when we are out I pick her up or ask people to kneel down. She hasn't acted shy since. She has always came to me but it was more with others, now she is comfortable with everyone and does not do the shy thing.