Armenia’s second GEM National Report reveals a shift in entrepreneurial dynamics since 2019. While EBOs increased to 10.8%, TEAs declined from 21.0% to 17.6%, with the steepest drops observed in rural areas. Notably, Armenia ranks 5th out of 51 GEM countries in 2024 with TEA absolute indicator of internationalization, despite relatively low innovation output. The share of necessity-driven entrepreneurs remains high (79.3% of TEAs), though motivation of wealth creation—are increasing. There is a marked rise in “one man business”, now comprising 44% of TEAs and 53% of EBOs, suggesting growing micro-entrepreneurship but limited scaling potential. Armenia reports high societal support for entrepreneurship (87.6% view it as a desirable career), yet self-perceived entrepreneurial capabilities dropped by over 10 percentage points since 2019. AI and digital tool adoption is low among EBOs (17.5% view AI as “very important”), despite TEAs showing high optimism about AI’s future impact. NECI scores improved significantly, driven by better assessments of government policy (tax and bureaucracy), though entrepreneurial education and R&D transfer remain among the weakest framework conditions. This edition offers comparative insights for economies facing strong urban–rural divides, post-crisis economic recovery, and policy-driven entrepreneurship reform.