This chapter explores the issues of ethnodevelopment in Indigenous tourism entrepreneurship on Lombok, Indonesia. It highlights the opportunities and barriers to ethnodevelopment of small-scale tourism entrepreneurship within few local communities of Lombok. The chapter seeks to understand the factors influencing entrepreneurial culture for small-scale Indigenous tourism entrepreneurs. These findings, while unique to the research setting, have broader lessons for ethnodevelopment in tourism entrepreneurship in other developing countries. Thus engaging the host community in tourism through ethnodevelopment and Indigenous entrepreneurship requires an understanding of the tourism entrepreneurial process, as well as the attitudes of the host community towards the entrepreneurial activities in tourism. The research seeks to fulfil this gap by examining the entrepreneurial culture on Lombok, Indonesia facilitating or inhibiting Indigenous entrepreneurs within the tourism industry. Ethnodevelopment and entrepreneurship is reliant on having an effective entrepreneurial culture that will support and develop small businesses within a society.