Drawing on the experiences of 18 Australian Indigenous female entrepreneurs (AIFE), we use a grounded theory approach to understand their entrepreneurial development in the face of adversity. Informed by the concept of adversity quotient (AQ), our findings reveal that Indigenous female entrepreneurs do experience a range of adversities stemming from their gender and ethnic background. We examine the role that AQ – specifically, an individual’s ability to deal with adverse situations – has in allowing Indigenous entrepreneurs to leverage contingencies to establish a business. We find that business success is enabled by Indigenous entrepreneurs seeking to control the situation through endurance and persistence and taking ownership to improve their situation. We contribute to the existing underdog entrepreneurship literature by developing a model of adversity encountered by AIFEs.