A recent study suggests that entrepreneurs often become more committed to their ventures when they are told they are likely to fail. Rather than discouraging them, such messages can intensify motivation and lead founders to invest greater effort in making their businesses work. The findings challenge the assumption that confidence-building and positive reinforcement alone are the most effective ways to support entrepreneurial success.

The research was led by psychologist Tim Michaelis, who notes that entrepreneurs typically identify very strongly with their ventures. For many founders, a business is not just a job or a commercial project, but a reflection of their values, ideas and personal identity. As a result, being told that a business will fail can feel deeply personal, almost like a judgment on the individual rather than the idea. This observation prompted the researchers to explore whether such experiences might actually deepen commitment instead of undermining it.

The researchers were especially interested in what they call the “underdog effect”. While this idea has been studied extensively in developmental psychology, it has rarely been applied to entrepreneurship. The core question was whether being positioned as an underdog, or recalling moments when others expressed doubt, could motivate entrepreneurs to persist and work harder. In essence, the study asked whether resistance and scepticism might sometimes be more motivating than encouragement.

To examine this, the team conducted three studies involving more than 1,400 entrepreneurs. In the first study, participants were grouped according to whether they could recall a time when someone told them their business would fail. Those who remembered such an experience showed a noticeably stronger commitment to continuing their ventures. Simply recalling past doubt was associated with a greater willingness to persist, even when facing uncertainty and obstacles.

The second study focused more directly on motivation, particularly the desire to prove others wrong. Entrepreneurs who could recall being told they would fail reported a stronger drive to demonstrate that the sceptics were mistaken. This pattern reinforced the first study’s findings, showing that negative expectations can activate an underdog mentality that pushes entrepreneurs to invest more energy and focus in their work. The third study extended this insight over time, tracking entrepreneurs across several months while accounting for factors such as confidence, experience, financial incentives and passion. Once again, the underdog effect emerged as a consistent driver of motivation and persistence.

One unexpected finding across the studies was the number of entrepreneurs who reported never being told their business would fail. These individuals had received only positive feedback, or none at all, and they tended to show lower levels of commitment and persistence. Overall, the research suggests that while support and encouragement matter, some degree of doubt or resistance may help entrepreneurs develop the drive needed to succeed. It also raises important questions about how to balance constructive criticism with motivational challenge, and how entrepreneurs can learn to use scepticism as fuel rather than as a signal to give up.

More information: Tim Michaelis et al, I’ll prove you wrong! The underdog effect as an antecedent to entrepreneurial action and venture persistence, Journal of Business Venturing. DOI: 10.1016/j.jbusvent.2026.106581

Journal information: Journal of Business Venturing Provided by North Carolina State University