Book excerpt: Armenia's ICT sector has experienced remarkable growth, expanding by 20% in 2022, underscoring the country's commitment to digital transformation as a policy priority. Despite these efforts and trends, SMEs continues to face significant obstacles in their digital transformation, including lack of awareness, low digital skills levels, and financial constraints. This reports aims to support the Armenian government in addressing these challenges and fostering business digitalisation. Building on previous OECD work on digitalisation policies and insights from the 2024 edition of the SME Policy Index for Eastern Partner countries, this publication offers a comprehensive overview of Armenia’s institutional framework and policy initiatives for SME digitalisation. Through data-driven analysis, it examines the challenges hindering the digital transformation of Armenian businesses and provides insights to unlock their potential. This report serves as a guide, offering detailed recommendations aimed at improving framework conditions for SME digitalisation, building a structured system for SME digitalisation support, and fostering synergies in the ecosystem to facilitate digital transformation.