This study aimed to investigate on entrepreneurial performance and capabilities for community based tourism programmes (CBTPs) and their supply chain businesses with a focus on cultural tourism initiatives for communities located at close proximity to protected areas in Arusha region, Tanzania. A cross sectional survey design was adopted. Information was gathered from a sample of 210 respondents using questionnaires, interviews, focus group discussion and participant observation. Both descriptive statistics and multivariate inferential statistical techniques were used for data analysis. To examine the existing correlation between skills, resources and performance, correlation analysis, multiple regression and factor analysis. Majority are possessed by few individuals which lead to questions whether they benefit majority of local communities at tourists' destinations. There are no clear entrepreneurial capabilities and performance as a process of entrepreneurship is somehow debatable. Entrepreneurial skills and performance are not positively related but owners have to be supported in terms of start-up and realized benefits may conform with ownership.