Benefits of Negative Emotions in Entrepreneurship Education Keywords: entrepreneurship, learning, critical events, emotions, thematic analysis Objectives Instead of regarding negative emotions in action-based entrepreneurship education as a major problem, this paper studies them as a potential learning opportunity for the students. Action-based learning typically causes various conflicts and critical incidents, generating high levels of emotions, which in turn can have important impacts on learning and identity building processes (Jarvis, 2006). The aim of the paper is to gain increased understanding of the most important critical events in action based entrepreneurship education that are causing high levels of emotions, both negative and positive, those possibly resulting to learning and personality development. Prior work Recent studies within the field of entrepreneurship education and beyond (Pekrun, 2005; Mezirow, 1985, 1990, 1991, 2003, and 2006; Jarvis, 2006; Biggs, 1996; Vygotsky, 1987; Cope, 2003, 2005 and 2010; Pittaway and Cope, 2007, Kyrö, 2005, and many others) imply that emotions have a major impact on motivation, learning, self-efficacy and identity building. Both positive and negative emotions seem to play important roles. Until today studying critical incidents that aim to increase an understanding of cognitive, affective and behavioural elements from the individual’s perspective has been conducted primarily outside of enterprise and entrepreneurship education (Chell, 1998). Approach Current qualitative study is using the thematic analysis from semi-structured interviews of higher education students taking part in action-based entrepreneurship programs and courses in Estonia (N=48, and N=16), Finland (N=18) and Namibia (N=13). Focus of the study being the students’ reflections of the events that were sources of high levels of negative (for example: anxiety, anger, fear, frustration) and positive (for example: joy, satisfaction, happiness, euphoria) emotions and that appeared during the learning processes. Results Our data analysis showed that most frequent sources of negative emotions are team-work issues, challenging tasks and overcoming traditional learning environment into socio-constructivist (for socioconstructivist view to learning see Duffy et al., 1993; Tynjälä, 1999). These aspects that caused a great variety of emotions seemed to result in improved ability to cope with uncertainty for those participating in the study. Our findings indicate that the deeper the students experienced the negative emotions; followed by the support and reflection, the deeper they experienced learning. Implications The findings could have important implications for the teachers designing learning environments in action-based entrepreneurship education as well as in other domains of higher education. Further research on the role of emotions in entrepreneurship education is recommended. Value Kyrö et al (2008) call for more research on affective constructs in education due to their potential to empower entrepreneurial and enterprising learning. Cope (2003) raises the need for more research on the relation between emotional intensity of an event and its impact on reflection and learning. This paper represents one step in this proposed direction within the area of action-based entrepreneurship education, and might inspire future related contributions to research and practice on both conceptual and pedagogical levels.