Locational challenges and opportunities for SMEs in border regions

Abstract

The present paper explores the unresolved issue in regional planning of whether small- and medium-sized enterprises (SMEs) benefit from being located in border regions in terms of cross-border cooperation opportunities and cross-border externalities. By systematically reviewing the existing literature on the topic with the help of a mapping review, it suggests the following answer: SMEs in border regions do benefit from cross-border cooperation opportunities. However, there is no strong empirical support of a prevalence of positive cross-border externalities. Rather, the review finds that SMEs in border regions are influenced by negative cross-border externalities. Since the results do not point in a clear-cut direction, given their high degree of context-specificity, we claim that further studies on the topic are necessary to combine the established knowledge on SME-based entrepreneurship with planning theories and concepts taken from the literature on borders, border asymmetries and border regions.