ENThe development of business environment in frontier area is determined by specific historical and economic circumstances. The aim of this research is to develop strategic solutions for well-balanced development of cross-border region evaluating factors, influencing Kurzeme and Klaipeda region business environment. Within this research was compared business environment of both frontier areas and their development possibilities, evaluated conditions of local demand and external environment which reflect attractiveness of the cross-border region and influence business growth in it. The research period covers years 2005-2011. In the frame of practical research was organized inquiry of 490 entrepreneurs and summarized their opinions; organized focus groups' discussions to define the main development priorities. In the result, cross-border region SWOT analysis and development strategy were developed. Analysis of factors, influencing cross-border business environment, detected line of common strengths and weaknesses which demand for appropriate strategic solutions for simulation and successful development of the cross-border region.