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This article aims to use discrepancy theory to understand why some entrepreneurs persist in the face of business failure. To this end, we propose a theoretical model highlighting the direct and indirect determinants of entrepreneurial persistence. Our results, based on a sample of 100 failing entrepreneurs, show that, in the specific context of entrepreneurial failure, the performance of new ventures is not the best predictor of persistence. Rather, it is the entrepreneur’s satisfaction, measured in terms of the perceived gap between his or her achievements (where he or she is today) and his or her expectations (where he or she wanted to be when starting the business) that better explains persistence in the face of failure. Our results also show that the entrepreneur’s motivation and the perceived hostility of the business environment have a significant influence on persistence via the entrepreneurial satisfaction mentioned above. The amount of resources invested also has an indirect influence on entrepreneurs’ persistence through the double mediation of business performance and personal satisfaction. Theoretical and practical implications, limits, and future research avenues are also discussed.