Found this an issue when I was coaching kids Ice Hockey, the parents couldn't understand that losing games had value. We brought ours to be as competitive as possible, but to respect the fact you couldn't always be first. Other parents couldn't see this. If you don't teach them to be competitive always praising and lauding medioctrity they never succeed.
I had an arguement in two successive seasons with parents. We had a team of U 12's who were of a very low standard but the parents demanded we have a team despite the advice of myself and my coaching staff that they were not ready for a competitive league games. They played the season and did okay, won a few but lost more. the following year the sels same parents demanded we DONT run a team because they were worse, I said no we run with it and the kids had a great season.
Seeing the youngsters we have coming into business worries me, there's no urge to excel it's all about mediocrity, getting constant praise no matter how good or bad at something you are.
It's not about humiliating losers, it finding something positive they can develop