Entrepreneurship research discusses positive motivators like passion, self-efficacy, and identity. Although these factors still remain important, there have been new studies that state negative expectations such as being told you will fail, can actually increase persistence in entrepreneurship. This is associated with Psychological Reactance Theory (PRT) and is referred to as the underdog effect.
So, saying that an entrepreneur is unlikely to succeed may inspire them and reactance can occur if they believe that their freedom to succeed is in danger. Reactance is an emotional and cognitive response which is aimed at restoring autonomy. It can be motivated by the desire to show others that they are wrong to make assumptions about their failure.
Consequently, this might cause increased hustle and compulsive thinking which is not always beneficial. Such entrepreneurs could also become more determined when they remember the instances when they were told that they wouldn’t succeed. For example: They may become more committed to their business to ensure its success. A study in 2026 also found that reactance may increase when the entrepreneur is doubted by someone who they don’t think is capable.
Nevertheless, the underdog effect also goes beyond the need to prove others wrong about their own capability. It also comes from the belief that they have nothing to lose so they put in a lot of effort to ensure that they do everything in their control. This is especially the case when it is paired with a growth mindset, a supportive business environment, and entry into industries that are characterized by low barriers to entry.
But the underdog effect’s advantages are different depending on the situation and mindset, so it is not always applicable. It is possible that being the underdog could work against you if factors such as a strong mindset or good social environment are not present. Everything is not in our control and external challenges are very much present so motivation alone can’t help us cross actual obstacles like discrimination and limited access to capital.
In conclusion, reactance can only help in certain circumstances. It may enable them to go ahead of their counterparts who have never been questioned about their capabilities only if there are certain conditions, these can be both internal or external. For example: when they have a better mindset (internal) or social environment (external). So, the reward from reactance is conditional and does not guarantee success.
Food for thought: If doubt fuels our drive, what happens when it comes from someone whose opinion really matters to us?
References
- Brehm, J. W. (1966). A theory of psychological reactance. Academic Press.
- Michaelis, T. L., Spivack, A. J., Smith, N. A., Pollack, J. M., Carr, J. C., & McKelvie, A. (2026). I’ll prove you wrong! The underdog effect as an antecedent to entrepreneurial action and venture persistence. Journal of Business Venturing, 41(3), 106581. https://doi.org/10.1016/j.jbusvent.2026.106581
- Shipman, M. (2026, February 18). Want entrepreneurs to work harder? Tell them they’ll fail | NC State News. NC State News. https://news.ncsu.edu/2026/02/entrepreneurs-underdog-effect/
- Zhu, H., Xiao, X., & Tang, Y. (2022). Creating extraordinary from ordinary: high resource efficiency of underdog entrepreneurs and its mechanism. Frontiers in Psychology, 13, 851356. https://doi.org/10.3389/fpsyg.2022.851356