My Sophie is the same way. She shies away from peoples hands that reach out to her and I KNOW she has never been hit. I try to encourage people to bring their hands up from under her chin if they want to pet her and she does a bit better. She shakes in new experiences or loud noises but goes to work with me everyday so she isn't an isolated pup. We got a second Yorkie her size who is braver and she has learned some from her. She has other dogs that are bigger in our family and she is a fool for them. Loves them all, but barks at every noise, voices she hears and barks after people when they leave the room. I have just decided to love her like she is and try to ease her fears as much as I can. I do so hate that she is scared so much.