This chapter introduces the emotion-motivation-cognition (EMC) model of entrepreneurial failure. It develops a conceptual model that describes and explains how emotions, motivation, and cognitive processes operate in an integrated model. The chapter discusses the type of cognitive processing motivated by failure that is particularly useful for learning and producing new insights. It then describes the error management perspective and then outlines individual differences in error management mindset and its implications for learning from entrepreneurial failure. The chapter argues that an error management mindset influences the intensity of negative emotions after experiencing entrepreneurial failure. It also argues that whether entrepreneurial failure serves to motivate entrepreneurs to engage in deeper-level cognitive processing depends on error management mindset. Error management mindset should influence whether entrepreneurs engage extensively or only superficially in cognitive processing because it is related to engaging in metacognition.