F Scott Fitzgerald said: “There are no second acts in American lives.” An awful lot of entrepreneurs, investors and executives must hope he was talking nonsense.

The past 18 months have seen many reputations ravaged,

plenty of high-profile sackings and a lot of business failures. I am afraid that in this digital world, such blemishes are recorded for all time.

Not many of us will emerge entirely unscathed from the battering of this downturn – a great deal of mistakes of different sorts have been exposed. So we should all maintain an optimistic belief that the world is more forgiving than is commonly supposed.

Career comebacks from disaster are both difficult and, oddly, easy. Difficult because your record has been blighted; easy because if you have achieved triumphs before, you know how it's done. While we are suspicious of someone who has suffered a serious setback, we also respect hard-won experience.

Moreover, the doctrine of redemption is a central part of our culture. The idea that someone is an irredeemable loss seems incredibly brutal. Such a judgment feels as if it should be reserved for those who have been criminal, repeatedly negligent, or created damage on a grand scale.

Of course, society exalts management talent too much, so when the pendulum swings we relish having fallen leaders to blame. Those who rise to the top are lavishly rewarded, and vilification for incompetence is part of the bargain. If you cannot stomach the risk, do not strive for high office.

When you dig deep into a CV, most reveal missteps – and some outright cock-ups. These negatives are rarely highlighted by the author, but I always prefer an interviewee who is honest when questioned about past errors, rather than evasive. Straightforward admission and an explanation of the lessons learnt appear to me the best policy. After all, we all know life is an imperfect affair. I am convinced that the world's mental hospitals are full of misguided souls who believed otherwise, and cannot cope with the messiness of reality. As Samuel Smiles said: “He who never made a mistake never made a discovery.”

Success often breeds arrogance; one of the benefits of defeat – and there aren't many – is that it tends to produce a humbler personality. Most of us are more rounded characters for having got things wrong. I read recently that executives should not consider their work done until they have tackled a turnround. Those who have overcome adversity are likely to be better equipped to deal with such challenges than someone who has sailed along without even a hiccup. A pummelling toughens you up, makes you fitter for the next engagement. And as long as you don't cave in to disappointment, recovery is always a possibility.

Big wins early on can be a curse. They may give you the impression that everything else is a downward trajectory. After all, no one wants to be labelled

a has-been.

One of the cures for this disease is the ability to adapt your expectations and reinvent yourself if the door has slammed shut on your first profession. There are many sorts of hero, and most of us have more than one skill. The danger of obsessive specialisation is that

if that field dies, where do you go? I hear of former financiers, fired from their bank and fed

up with the City, who are retraining as schoolteachers. Now that I admire.

Switching disciplines can be a tonic, but complete withdrawal from the fray must be avoided if you are to make progress. Action is the antidote to despair. Equally, self-pity is harmful. Focus instead on building a mutual support network, finding a new mission, and discovering ways to add value all across the waterfront.

Just as bankruptcies never happen just because of bad luck, so a rebound is not simply a matter of chance – it requires industry, motivation and intelligence. So, whatever your misfortunes, you should endeavour to stay busy and bear in mind that everyone gets another opportunity or two if they keep trying.