This paper aims to investigate the experience and to identify the drivers of transforming traditional universities into Entrepreneurial Universities for ensuring sustainable higher education in Latvia. Due to the wide scope, Entrepreneurial University characteristics, the present research study is limited and focuses on the university providing access to students to business incubation facilities, relationships with business incubators for students, as well openness of university to collaboration and knowledge co-creation with its external stakeholders. Analyses of the experiences of universities of Latvia business incubators providing services to students, as well cooperation between higher education institutions (HEI) and local governments and entrepreneurs show that there is a positive trend. In opposite, such a trend can't be observed towards building Entrepreneurial Universities in Latvia over the past 5 years. The results of the survey show that there is a need put higher efforts to assist young entrepreneurs in building cooperation networks and strengthening knowledge co-creation with external stakeholders.