The objective of this activity is analysis on the challenges and opportunities for development of entrepreneurship and attracting investments for business development in the cross-border areas at the EU external border of Latvia, Lithuania and Romania as pilot territories. More concretely, the objective of this activity is to satisfy the stakeholders’ knowledge need as defined below: What are the main challenges faced by the local businesses in the cross-border areas at the EU external border? Why the existing policies and business support mechanisms have not been efficient in delivering the expected socio-economic development results? What has worked and what has failed? What are the development perspectives and added value that closeness to the EU external border can provide in terms of attracting investments and conquering new markets thus stimulating socio-economic development? What policies need to support these processes taking into account the socio-economic and geopolitical circumstances? What concrete support mechanisms need to be developed that could stimulate entrepreneurs to develop their businesses in the cross-border areas by using this specific location and other conditions as an asset? What concrete actions this would imply? What kind of cross-border cooperation among the EU countries and the neighbouring countries across the EU border could stimulate development of entrepreneurship on the external borders of the European Union? What kind and what level of business knowledge local entrepreneurs have? How to increase the knowledge of local entrepreneurs about business related topics, especially trade near by the border area.Disparities in socio-economic development among national/regional centres and remote cross-border regions, especially those near the EU external borders are substantial. And, since the existing policies and support mechanisms for business development in the territories located on the EU external borders have not provided the expected improvement, new approaches that could stimulate business development by utilising the cross-border potential need to be found. The main outcome of the service should be: Analysis of the existing business environments at the EU external border in the project stakeholder territories, indicating main challenges and opportunities; Assessment of territorial effects of existing policies and business support mechanisms in the project stakeholder territories; A framework for common territorial strategies at EU external borders, pointing out how the opportunities of being close to the EU external borders can help attract investments and improve economic development; Recommendations on what concrete policies and support mechanisms need to be established, with proposals for the necessary financial interventions and activities that could be funded by the EU funds, including those supporting territorial and cross-border cooperation.