Entrepreneurial learning and decision-making in uncertain environments are critical factors in startup success, yet the impact of vicarious learning from others' failures on these processes remains understudied. This study examines how vicarious learning from others' failures affects entrepreneurs' experiential learning and strategic decision-making processes. Using a field experiment involving 336 early-stage startups in Pakistan, we compare entrepreneurs trained through failure-focused learning with those trained through success-focused learning. Our findings reveal that entrepreneurs learning from others' failures initially reach revenue generation faster but pivot less frequently and less intensively over time. They also demonstrate a preference for practical, hands-on thinking at the expense of more conceptual or visionary approaches and reflection. The study contributes to entrepreneurial strategy literature by emphasizing strategy as "what not to do," explores cognitive benefits of learning from failure, and broadens the discourse on entrepreneurial experimentation.
