Since 2000, the Armenian government has pursued a pro-active approach to supporting SME growth. Key developments were the establishment of an SME policy implementation agency, creation of an SME Support Council and, currently, work on a new SME strategy. Armenia has achieved the highest scores in the areas of operational environment as a result of recent and extensive deregulation initiatives. The SME Development National Center Fund (SME DNC Fund), an efficient and geographically far-reaching SME agency, offers effective SME support tools such as business services and training and information centres, particularly for start-ups. Armenia further supports SMEs in building its export and innovation capabilities. Despite these improvements and the government’s declaration that SME development is a strategic priority, the sector still needs a strong and viable development strategy and effective policy implementation mechanisms. According to the SBA assessment, key areas which should be given priority are SME financing, innovation and export promotion.