So, you have a puppy now. The pup shys away, or acts fearful towards people, other animals, or new objects. You have a pup who is shy.
Now what?
The object of this article is to assist you in building confidence in your new friend. It's not so much that the pup reacts in a shy way (there are very few pups that never react to anything), the important thing to remember is the
recovery from the 'scare', and how you'll assist your pup in that recovery.
It's extremely important that new encounters be controlled by you, to avoid any further imprinting which inhibits your pup.
When people approach, make sure to tell them your pup is a bit shy - do not allow them to simply stick their hands out and stand there... especially do not allow them to approach the pup from overhead. This is perceived as a threat.
Throw a Party! A better approach is to simply have the person ignore the pup while you slip a few tasty tidbits into the person's hand. Carry on a jovial conversation with the person, and allow the pup to investigate this person and find the food in their hands. This allows the pup to conquer it's fears on it's own, without being 'pushed' into the situation.
Having a group of friends sit in a circle with tidbits for a pup to discover, and allowing the pup to climb on them, will also do wonders for the shy pup.
What's in a nub? Know your pup's body language.... WATCH THE NUB/TAIL .... when the nub is tucked, ears go back, and you see the pup 'shrink' - your pup is already experiencing a fearful reaction. Do NOT reward this behavior by coddling the pup.... tell the pup how silly it is, and have life go on.
Love those treats! Never force a shy pup (or any pup) into a new situation. Guide the pup with a trail of treats to that horrible monster of a vacuum cleaner.... allow the pup to eat a hotdog or two that are placed on the object.... encourage your pup to walk into the new building by talking happily to it, while feeding it along the way.... you'll be amazed at the power a hot dog possesses!
As the owner of a shy pup, it is imperative that you get your pup into classes as soon as possible. You'll be able to work one on one with folks in a very controlled environment, creating the right scenarios for your pup to conquer.
Catch it early! It's also important that you work on this each and every time your pup begins to show a fearful response.... watch your pup constantly! It's far easier to bring a pup back from 'almost' fearful, than it is if the pup is in the throws of "OH MY GAWD!!!".
Never! Ever coddle a pup for displaying a fearful response! This will simply reward the behavior, strengthening the response you are attempting to extinguish! While a pup is adorable, and it can be 'heartbreaking' to see your pup scared, do the right thing, and guide the pup into recovery.
Remember, you only have until the pup is 12 weeks old to truly socialize it to it's new world. Beyond that age, you are simply desensitizing the puppy to things that make it uncomfortable. So get that pup out and about for a short period every day.
Building confidence is the most important thing a new owner can do for any puppy - but it's especially necessary for a shy pup. A confident dog is a safe dog.
In addition, be honest about 'who' that dog is at the other end of your leash. Soft/shy dogs are hard wired that way.
There's a common misconception that a dog who is handshy or fearful has been abused. Most of the time, it's safe to say that they haven't... this is simply inborn temperament.
Who are you? Know your pup's liimits - work within them, allowing your pup to conquer it's new world a piece at a time. Over stimulation can be just as harmful as under stimulation. Be careful not to over correct a soft puppy - this can imprint badly as well. Some dogs will never get over being shy as a puppy - so knowing your dog's limits is very important, for your safety, the safety of others, and the safety of your dog.
Fear Periods In the stickied article, "Critical Periods of Canine Development", you will note that there are several fear periods that young dogs experience during their maturation process. Pups of weaker, or shy temperament usually experience these stages in a more pronounced way than pups of stronger constitution. Be aware of what your pup is experiencing by learning what to expect during specific stages of development. This is also part of knowing 'who' your pup is.
A Viking friend of mine told me once,
"What doesn't kill you, makes you stronger". This is the mantra I preach in my puppy class, and it's one that every new puppy owner should chant every time they take a puppy out of the crate - especially the shy pup.
To summarize things - keep life with your shy pup silly, upbeat, and happy. The more your pup sees you enjoying life, the more apt the pup is to join in on the reindeer games.

While you can never undo, or train out inborn temperament, you can desensitize your pup, and teach it to deal with life as your companion.