{"id":3615,"date":"2025-07-08T15:59:24","date_gmt":"2025-07-08T15:59:24","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=3615"},"modified":"2025-07-08T15:59:24","modified_gmt":"2025-07-08T15:59:24","slug":"resilient-entrepreneurs-dont-shy-away-from-failure","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/resilient-entrepreneurs-dont-shy-away-from-failure\/","title":{"rendered":"Resilient Entrepreneurs Don\u2019t Shy Away from Failure"},"content":{"rendered":"

By Daniel Butcher<\/a><\/p>\n

Some of the most common mistakes that entrepreneurs make are focusing too much on past successes, pretending that hard work always results in success, and not learning from failure, according to Academy of Management Scholar Dean Shepherd<\/a> of the University of Notre Dame.<\/p>\n

Shepherd said that the shocking closure of his own father\u2019s business was what inspired him to study the effects of entrepreneurial failures. He described loss orientation as communicating about the disappointing or traumatic event and restoration orientation as thinking about other things, including next steps.<\/p>\n

\u201cIt was a family business in residential construction formed around 1965\u2014I am not sure how large it was, but [it built] maybe 100 houses per year, and there were no full-time employees; my father used a lot of sub-contractors,\u201d Shepherd said. \u201cIt started to experience some difficulties approximately one year before he closed it down.<\/p>\n

\u201cHe was very much a restoration-orientation person, so he refused to talk about it, just like a typical Australian male, and he and I never discussed it,\u201d he said. \u201cHe never engaged in loss orientation, [grieving the] loss of his business; he never oscillated between loss orientation and restoration orientation, and so he suffered for a long time as a result of that.<\/p>\n

\u201cI did research on scientists working in Germany, and when their projects failed, those that were able to oscillate between the two, loss orientation and restoration orientation, were the ones who were most successful at processing the setback or loss, bouncing back, and moving forward.\u201d<\/p>\n

Shepherd cited the work of Eric Ries, an entrepreneur and author of The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses<\/em>, as emblematic of a strain of entrepreneurship that doesn\u2019t shy away from failure but actually highlights the need for it to inform the organization\u2019s plans, budgeting, and initiatives.<\/p>\n

\u201cA lot of entrepreneurs now, including the author of The Lean Startup<\/em>, are trying to think about different projects like real options, so they\u2019re probes into an uncertain environment, and if we have many of them, then we gain information, and as we get that information, we can kill some projects and redeploy the resources to the ones that show promise,\u201d Shepherd said. \u201cThat\u2019s a way to try and manage the uncertainty, and it really has failure as part of the process, because we must terminate those initiatives that don\u2019t show promise in order for this strategy to work.<\/p>\n

\u201cIf we have an anti-failure bias and we choose not to terminate them, or we take longer to make the decision to discontinue them, then the downside losses actually start to increase,\u201d he said. \u201cThe best examples are my dad, who struggled to process failure, and the studies of the German scientists, some of whom were able to deal with failure in a productive way.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

By Daniel Butcher Some of the most common mistakes that entrepreneurs make are focusing too much on past successes, pretending that hard work always results in success, and not learning from failure, according to Academy of Management Scholar Dean Shepherd of the University of Notre Dame. Shepherd said that the shocking closure of his own […]<\/p>\n","protected":false},"author":4,"featured_media":4027,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[20,29,22,21],"tags":[],"sp_smart_badges":[],"ppma_author":[70],"class_list":["post-3615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-careers","category-emotions","category-entrepreneurship","category-innovation"],"acf":[],"yoast_head":"\nResilient Entrepreneurs Don\u2019t Shy Away from Failure - Academy of Management Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/resilient-entrepreneurs-dont-shy-away-from-failure\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Daniel Butcher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/resilient-entrepreneurs-dont-shy-away-from-failure\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/resilient-entrepreneurs-dont-shy-away-from-failure\\\/\"},\"author\":{\"name\":\"Daniel Butcher\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/d1297a59039d9ca7bac9d9f0952e508c\"},\"headline\":\"Resilient Entrepreneurs Don\u2019t Shy Away from Failure\",\"datePublished\":\"2025-07-08T15:59:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/resilient-entrepreneurs-dont-shy-away-from-failure\\\/\"},\"wordCount\":486,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/resilient-entrepreneurs-dont-shy-away-from-failure\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/03\\\/businessman-on-sinking-ship1.webp\",\"articleSection\":[\"CAREERS\",\"EMOTIONS\",\"ENTREPRENEURSHIP\",\"INNOVATION\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aom.org\\\/today\\\/resilient-entrepreneurs-dont-shy-away-from-failure\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/resilient-entrepreneurs-dont-shy-away-from-failure\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/resilient-entrepreneurs-dont-shy-away-from-failure\\\/\",\"name\":\"Resilient Entrepreneurs Don\u2019t Shy Away from Failure - 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You can reach him at dbutcher@aom.org or via LinkedIn.","sameAs":["https:\/\/aomtodayprod.wpenginepowered.com","https:\/\/www.linkedin.com\/in\/danielbutcher\/"],"url":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"}]}},"authors":[{"term_id":70,"user_id":4,"is_guest":0,"slug":"daniel-butcher","display_name":"Daniel Butcher","avatar_url":{"url":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp","url2x":"https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/01\/DanButcher_Academy-of-Management.webp"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"rttpg_featured_image_url":{"full":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1.webp",1080,720,false],"landscape":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1.webp",1080,720,false],"portraits":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1.webp",1080,720,false],"thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1-150x150.webp",150,150,true],"medium":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1-300x200.webp",300,200,true],"large":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1-1024x683.webp",800,534,true],"1536x1536":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1.webp",1080,720,false],"2048x2048":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1.webp",1080,720,false],"owl_elementor_thumbnail":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1-600x400.webp",600,400,true],"owl_elementor_team":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1-350x450.webp",350,450,true],"owl_elementor_testimonial":["https:\/\/www.aom.org\/today\/wp-content\/uploads\/2025\/03\/businessman-on-sinking-ship1-100x100.webp",100,100,true]},"rttpg_author":{"display_name":"Daniel Butcher","author_link":"https:\/\/www.aom.org\/today\/author\/daniel-butcher\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/www.aom.org\/today\/category\/careers\/\" rel=\"category tag\">CAREERS<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/emotions\/\" rel=\"category tag\">EMOTIONS<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/entrepreneurship\/\" rel=\"category tag\">ENTREPRENEURSHIP<\/a> <a href=\"https:\/\/www.aom.org\/today\/category\/innovation\/\" rel=\"category tag\">INNOVATION<\/a>","rttpg_excerpt":"By Daniel Butcher Some of the most common mistakes that entrepreneurs make are focusing too much on past successes, pretending that hard work always results in success, and not learning from failure, according to Academy of Management Scholar Dean Shepherd of the University of Notre Dame. 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