Abstract
The article examines the problem of competitiveness in Southeast European countries, with a special emphasis on the position of these countries in World Economic Forum rankings of competitiveness, as well on their potential membership in the European Union. The article determines the most problematic factors for doing business in the region. These factors represent the most important determinants of business sector competitiveness and have implications on national competitiveness. A TOWS matrix was created and established the common characteristics (strengths, weaknesses, opportunities and threats) of the countries in the region. The matrix was also used to suggest strategies for increasing competitiveness. A maxi-maxi strategy ("expansionary strategy") was suggested because it represents the best way to utilise the countries' strengths and opportunities. Cross-section analysis established that increasing gross enrolment ratio in tertiary education and direct foreign investments have the most the positive impacts on GCI scores.