A groundbreaking study recently published in the Journal of Business Venturing uncovers a paradoxical, yet compelling psychological phenomenon among entrepreneurs: being told that their business is destined to fail can actually intensify their dedication and drive to succeed. Contrary to the conventional belief that negative feedback discourages fledgling business owners, this research reveals that entrepreneurs who face skepticism—particularly explicit statements predicting failure—tend to become fiercely committed to their ventures. This unexpected discovery offers nuanced insights into the motivation mechanisms that fuel entrepreneurial persistence and success.
Entrepreneurship is often framed as a daunting journey fraught with obstacles and uncertainty. Many assume continuous positive affirmation boosts motivation and persistence, yet the study led by Tim Michaelis, an assistant professor of psychology at North Carolina State University, challenges this assumption. Michaelis points out that entrepreneurs often intertwine their identity with their business, so hearing that their ideas will fail is experienced not merely as criticism but as a personal affront. This framing sets the stage for a potent motivational response, colloquially termed the “underdog effect,” where being dismissed or doubted ignites a fierce resolve to prove naysayers wrong.
To explore the intricacies of this underdog effect, Michaelis and his colleagues designed a triad of experimental studies involving over 1,400 entrepreneurs in total. The first study recruited 423 participants, stratifying them into groups based on whether they recalled ever being told their business would fail. Intriguingly, those who could vividly recall such instances demonstrated significantly heightened commitment to persisting despite challenges. This group’s psychological resilience seemed to be catalyzed by the recollection of doubt, providing a measurable link between perceived skepticism and entrepreneurial tenacity.
Extending their inquiry, the researchers conducted a second study with 579 entrepreneurs to examine whether motivation to prove doubters wrong—rather than general motivation—had a unique effect on persistence. This study reinforced the initial findings, revealing that when entrepreneurs focused their energies on disproving a specific detractor’s prediction, their drive surged markedly compared to those motivated by stakeholder validation more generally. This underdog effect thus acts as a focused source of motivation, channeling entrepreneurial energies toward overcoming anticipated failure.
The final study adopted a longitudinal approach, surveying 417 entrepreneurs monthly over a three-month period. This design allowed the researchers to track fluctuations in motivation and persistence linked to the underdog effect over time, while controlling for confounding variables such as prior experience, passion, financial incentives, and self-confidence. The results mirrored earlier studies, confirming that entrepreneurial motivation bolstered by a desire to prove doubters wrong consistently predicted sustained effort and business persistence, validating the robustness of the underdog effect across different contexts and timescales.
Perhaps most revealing was the discovery about the entrepreneurs who had never faced explicit doubts about their business prospects. Paradoxically, this cohort—often surrounded by predominantly positive or neutral feedback—showed lower commitment and persistence levels than their underdog counterparts. This finding challenges widely held assumptions about the benefits of positive reinforcement, suggesting that the absence of resistance might actually dampen the psychological drive needed for enduring struggle and innovation in entrepreneurial ventures.
These findings invite a reexamination of how entrepreneurs receive feedback and support. Michaelis raises thought-provoking questions about the balance between encouragement and critique: How can mentors, investors, and support networks foster an environment that both nurtures initiative and strategically challenges entrepreneurs? There seems to be an optimal zone where constructive resistance fuels the psychological fire essential for perseverance, without tipping into demoralizing negativity that stifles progress.
On a theoretical level, the study bridges domains of developmental psychology and entrepreneurship. While previous research has acknowledged the motivational benefits of an underdog mentality in personal development and competitive contexts, this work is among the first to systematically examine its implications for entrepreneurial action. The findings underscore the complex interplay between identity, social feedback, and persistence—themes central to understanding why some entrepreneurs thrive amid adversity while others falter.
Practically, the underdog effect suggests that entrepreneurial education and incubation programs might benefit from integrating calibrated challenges that simulate doubt or skepticism. Developing an entrepreneur’s ability to harness negative feedback constructively—distinguishing motivational doubt from substantive critique—could become a cornerstone of training models aimed at fostering resilience. By teaching entrepreneurs to channel skepticism into focused effort, such programs could help transform potentially discouraging experiences into powerful catalysts for innovation.
Moreover, the psychological dynamics illuminated by this study tie into broader conversations about grit and growth mindset in entrepreneurship. The willingness to confront and overcome external doubts reflects underlying cognitive and emotional strengths that correlate with long-term success. Understanding how these elements coalesce provides valuable frameworks for psychologists, business educators, and policymakers interested in creating environments that maximize entrepreneurial potential.
While the research identifies the motivational upsides of the underdog effect, it also leaves open avenues for future inquiry. Key among these is exploring how different types of feedback—ranging from harsh criticism to constructive suggestions—influence entrepreneurial cognition and behavior across diverse industries and cultural contexts. Additionally, longitudinal tracking beyond three months could uncover long-term impacts on business outcomes, survival rates, and psychological well-being, enriching the practical utility of these findings.
This study’s nuanced approach also contributes to ongoing debates around entrepreneurial identity and emotional labor. The personal investment inherent in entrepreneurship means that external evaluations carry emotional weight that transcends professional feedback. Understanding this can inform tailored interventions aimed at supporting entrepreneurs’ mental health while fostering their strategic use of doubts and skepticism as motivational tools.
In sum, Michaelis and his collaborators have unveiled a counterintuitive yet highly actionable insight into entrepreneurial psychology. By demonstrating that being told one will fail can kindle an indomitable spirit of persistence—epitomized by the underdog effect—this research not only challenges simplistic narratives around feedback but also carves out new pathways for encouraging resilient innovation in the business landscape. For the entrepreneurs striving to transform ideas into sustainable ventures, harnessing the power of doubt might just be the key to unlocking unexpected success.
Subject of Research: People
Article Title: I’ll prove you wrong! The underdog effect as an antecedent to entrepreneurial action and venture persistence
News Publication Date: 5-Feb-2026
Web References:
https://doi.org/10.1016/j.jbusvent.2026.106581
References:
Michaelis, T., Pollack, J., Carr, J., Spivack, A., Smith, N., & McKelvie, A. (2026). I’ll prove you wrong! The underdog effect as an antecedent to entrepreneurial action and venture persistence. Journal of Business Venturing. https://doi.org/10.1016/j.jbusvent.2026.106581
Keywords: Entrepreneurship, Motivation, Persistence, Underdog effect, Business failure, Psychological resilience, Entrepreneurial identity, Feedback, Innovation, Grit, Growth mindset
