Development of competitiveness of SME’s from border areas through the cross border co-operation and the use of local cultural heritage and resources in product development. Improvement of skills and capacity of SME's in project area for using local cultural heritage, traditions and local resources in different business sectorsImprovement of business environment for SME's in project area through exchange of know-how and experiencesImprovement of skills and knowledge of school-children about entrepreneurship to ensure the future sustainability of business sector and to reduce unemployment of young peopleCreation of modern public infrastructure for SME's in project area, which can be used for consultation, meetings, trainings, seminars, dissemination of information, incubation. Achievements: Outputs*3 CBC networks created (Lat-Rus, Est-Rus, Est-Lat) between businesses participating in 6 study tours; *1 CBC network created (Est-Lat-Rus) between 40 tourism businesses participating in 3 joint cooperation seminars in Pskov, Ape and Setomaa; *Cross-border Business and Cooperation Centre established in Pechory (Russia) offering different kinds of support to SME's, including opening of Business incubation centre; *Pilot business training programme started in 3 schools in Pechory (Russia) and 2 schools in Ape area (Latvia), the existing programme was improved in 4 Setomaa schools; *New equipment installed at 3 schools in Pechory, in 2 schools in Ape and 4 schools in Setomaa; * 3800 copies of Manual for small and medium-sized enterprises about possibilities in using traditional cultural heritage in business issued; *1000 copies of Brochure in RUS about Cross-Border Business and Cooperation in Pechory (Russia); *Website of Cross-Border Business and Cooperation http://bizpechory.ru/ created Results* Skills and knowledge of ca 130 SME's improved about using cultural heritage in product development during 22 training days; *Improved skills and knowledge of schoolchildren in Setomaa (Estonia), Pechory (Russia), Ape (Latvia) about entrepreneurship to ensure future sustainability of business sector and to reduce unemployment among young people; *Improvement of business environment for small and medium-sized enterprises, crossborder trade, knowledge and skills of SME's in project area; *Skills and knowledge of ca 100 SME's were improved during 6 seminars where participants received valuable information about the regulations and conditions regulating cross-border trade; *During seminars improved skills and knowledge of 85 SME's from Pechory district (Russia), 55 SME’s from Estonia and 35 SME’s from Latvia; 30 SME’s from Latvia; * Cross-border network of 150 school-children from 3 countries (Estonia, Latvia, Russia) created during the joint study tours and joint events