@Raine Your view of semantics (and that of others) is a moot point. Is failure not trying, or not winning? I think I may be too inclined towards not winning, and some re-education is necessary.
When considering success and failure, I think it’s important not to forget why writers do write. Surely, all the various reasons can be summed-up as enjoyment? Maybe that should be enough, in the same way a day by the river, and maybe landing a bigger fish than before is enough for an angler?
With novel / story awards, you never know how that award is set up and funded, and what exactly they are looking for besides ‘voice’ and ‘engagement’.
Regarding your short story, have you given it ‘drawer time’?
I did this with my novel – for 18 months – while I learned formal poetry. I think this separation was an essential part of the process.