Latvia and Lithuania face the same territorial challenges in the cross-border area, such as slow economic growth, low competitiveness of the region, high unemployment and inactive entrepreneurship environment. The opportunity is represented by local inhabitants who are willing to start their own business and those who have recently established a SME that has a potential of developing into a successful enterprise. Important factor is a cross-border cooperation between potential and existing businesses from Latvia and Lithuania, which may result in the transfer of ideas, innovative technologies, creation of joint products, joint marketing channels and sales market expansion to a neighbouring country.