Cross-Border Entrepreneurship: Seizing Opportunities in the European Union’s Digital and Green Transition

Abstract

The article analyzes how existing or newly established companies can integrate into the transformations emerging from new climate change regulations and digitalization processes through the lens of cross-border entrepreneurship. Within the framework of the European Union's green transition regulations, it examines the European Green Deal (EGD), the Carbon Border Adjustment Mechanism (CBAM), the Emission Trading System (ETS), digital market strategies, and circular economy policies. The impacts of carbon pricing, renewable energy investments, green finance instruments, and sustainable economy strategies on businesses are evaluated alongside the digital transformation dimension, focusing on the Internet of Things (IoT), blockchain technology, e-commerce, and e-export. The central emphasis of the study is to demonstrate that, despite the presence of elements that initially increase costs and create compliance challenges, EU practices can be transformed into advantages in global market competition through an innovation-oriented approach. In particular, access to EU funds, sustainable production, and digital supply chain management stand out as factors that facilitate the adaptation of businesses to new markets. The study emphasizes that regulatory practices are not merely an obligation but a strategy for keeping pace with an evolving and changing world. It argues that institutions adopting these strategies can benefit from green transition and digital ecosystems, while contributing to the literature by establishing a link between policymakers and cross-border entrepreneurs. In order to realize the twin transition, facilitating access to finance, strengthening digital infrastructure, and ensuring compliance with regulatory frameworks emerge as key factors supporting SMEs’ integration into cross-border markets. It provides a conceptual and policy-oriented perspective on how the EU’s twin transition can reshape international business models and create new opportunity areas for sustainable and digital entrepreneurship.