This paper demonstrates that community forests have high potential to make a significant contribution to rural income and employment through non-timber forest products enterprises particularly to the poor. The paper highlights a practical experience of the pro-poor entrepreneurship approach, its process, steps and outcomes through examination of a recently-developed enterprise in Jiri, Dolakha district of the central hills region of Nepal. The paper concludes that there are five key aspects which need additional attention for a successful pro-poor enterprise: the scale of the enterprise; pro-poor governance of community groups; necessary skills and capacity to empower the poor producers, both socially and economically; partnership building among private, community groups and poor households; and specialized services to tap competitive markets and conducive policy environment.