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With almost 75% of its land area covered in forest, the Guyanese forest industry is important for national development and poverty eradication. This study assesses the opportunities and constraints facing the Small and Medium Forest Enterprises (SMFEs) in Guyana. Almost all of SMFEs are owned by Guyanese individuals or family firms. Similarly, most are directed towards the domestic and not the export market. The government policy towards SMFEs faces the conundrum that they are important for rural income generation, but less desirable in terms of enforceable sustainability. There is a clear need for a concerted programme of work in Guyana to address the various obstacles to economic, social and environmental sustainability faced by SMFEs. This study maps out how wide ownership of such a process could lead to significant gains for sustainable development.