Professional Growth

Locus of Control: Why Some People Rebuild Faster After Loss

By SUCCESS StaffPublished August 13, 20264 min read
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Two people lose the same client, the same job or the same round of funding in the same week. One spends the next month explaining, to anyone who’ll listen, why the market, the boss or the timing was against them. The other spends it making calls. Psychologists have a name for what separates them, and it isn’t talent.

The Question That Splits 2 Futures

In 1966, psychologist Julian Rotter published a framework that has quietly shaped how researchers study motivation for six decades: locus of control. The idea is a single question, asked in different forms across a 23-item scale. Do you believe outcomes in your life are mostly the result of your own actions or mostly the result of luck, fate and forces outside your control?

People who score toward the internal end of that scale tend to believe their effort moves the outcome. People who score toward the external end tend to believe the outcome was largely decided before they showed up. Rotter’s original scale is now 60 years old, but it remains the instrument nearly every locus of control study since has built on, including the research below.

When the Ceiling Cracks, Who Rebuilds First

The interesting question was never whether this belief exists. It’s whether it changes what happens to you when something goes wrong. A 2016 study published in the Journal of Economic Behavior and Organization used Australian panel data to track how people’s life satisfaction responded to a range of adverse life events over time. It found that people with a stronger internal locus of control seemed to be cushioned against the emotional impact of some of these events—including serious illness or injury, a close family member’s incarceration, being a victim of property crime and the death of a close friend—though the same protective effect didn’t show up across all events studied.

The belief didn’t prevent the setback, and it didn’t shield people from everything. But for at least some kinds of adversity, it appeared to soften the hit. A 2022 panel study of Australian adults reached a related conclusion, linking internal locus of control to higher life satisfaction and better mental health over time, partly through the lifestyle choices and social engagement it tends to produce.

The Founders Who Don’t Wait for Rescue

That pattern shows up in entrepreneurship research on how self-employed respond to a decline in job satisfaction. Research tracking roughly 7,000 self-employed workers in Germany through the pandemic found that a drop in job satisfaction changed how much time and money people put into their businesses, and this played out differently depending on locus of control. People with a strong internal locus of control—a belief that their actions matter—were less likely to pull back on their business when their day-to-day satisfaction dropped. A drop in financial satisfaction also made them more likely to invest more money, though not more time.

The study didn’t test whether belief in your own control makes you a more accurate judge of what went wrong. What it tracked was what people did next: Those with a stronger sense that their actions mattered were less likely to let a bad stretch turn into disengagement.

Where This Isn’t a License to Blame Yourself

This is not a claim that circumstance doesn’t matter, and it would be a distortion of the research to use it that way. People do lose jobs to layoffs they had no hand in, and structural barriers are real. Locus of control research doesn’t erase that. It measures something narrower: how a person responds once the circumstance has already happened, not whether the circumstance was fair.

It’s also worth noting that locus of control overlaps conceptually with related constructs like self-efficacy and general optimism, and some researchers have questioned whether Rotter’s forced-choice scale cleanly separates from these neighboring traits. The concept is well established, but it isn’t a single clean gene for resilience. It’s one measurable piece of a larger psychological picture, and treating it as a moral verdict on people who are struggling would badly misread what the studies actually show.

Rebuilding the Belief You Run On

None of the research suggests locus of control is fixed at birth or immune to change. It shifts, gradually, with the stories you tell yourself about setbacks after they happen. The practical version of this isn’t “think positive.” It’s narrower and more specific. After a setback, name the part of the outcome that was within your control—however small—before you name the part that wasn’t.

That habit doesn’t rewrite what happened. It rewrites what you do in the next 90 days, which is the part of the story that was always going to be yours to write anyway. 

The weather you can’t control will keep happening. What locus of control research actually shows is that the forecast you carry into it has measurable consequences of its own.

Featured image from KieferPix/Shutterstock

SUCCESS Staff

SUCCESS Staff

The SUCCESS editorial team. We chase what actually works and the people who do it, carrying the 129-year legacy forward.

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