Summary Understanding and predicting recruitment in species‐rich plant communities requires identifying functional determinants of both density‐independent performance and interactions. In a common‐garden field experiment with 25 species of the woody plant genus Protea, we varied the initial spatial and taxonomic arrangement of seedlings and followed their survival and growth during recruitment. Neighbourhood models quantified how six key functional traits affect density‐independent performance, interaction effects and responses. Trait‐based neighbourhood models accurately predicted individual survival and growth from the initial spatial and functional composition of species‐rich experimental communities. Functional variation among species caused substantial variation in density‐independent survival and growth that was not correlated with interaction effects and responses. Interactions were spatially restricted but had important, predominantly competitive, effects on recruitment. Traits increasing the acquisition of limiting resources (water for survival and soil P for growth) mediated trade‐offs between interaction effects and responses. Moreover, resprouting species had higher survival but reduced growth, likely reinforcing the survival–growth trade‐off in adult plants. Resource acquisition of juvenile plants shapes Protea community dynamics with acquisitive species with strong competitive effects suffering more from competition. Together with functional determinants of density‐independent performance, this makes recruitment remarkably predictable, which is critical for efficient restoration and near‐term ecological forecasts of species‐rich communities.