Abstract In recent decades, a culture of hopelessness has emerged among rural Americans, visible in epidemic levels of suicide, overdose, and other addiction-related illnesses. While the arrival of a novel coronavirus aggravated existing strains in rural economies, it also enabled positive transformations in some rural cities and towns. This research explores how businesses in rural America experienced and adapted to economic shocks caused by the Covid-19 pandemic and, in the process, changed the economic and social landscape. Applying a qualitative research methodology, the present research offers Pennsylvania's Central Susquehanna Valley as a case study, using data from 60 semi-structured interviews. The analyses demonstrate rural businesses' resiliency and adaptive responses, bolstered by embedded rural capitals and the unique characteristics of rural businesses themselves. Furthermore, the pandemic forced drastic changes for businesses in the rural landscape. On the one hand, Covid-19's losses and miseries take much material, human, and social resources from the rural community. On the other hand, changing relationships between businessowners and workers, and among partners in the supply chain could be long-lasting, creating extra rural capitals and better working relationships at the factory and beyond. Finally, adoption of new technologies and automation; new business directions, such as e-commerce and higher value-added production; and increases in mergers and acquisitions across industries were prevalent during 2020–2021. In many ways, the Covid-19 impacts could make rural America more dynamic and competitive. This research offers conceptual and empirical pathways to supporting economic and social development in rural America.

Highlights • This research explores how businesses in rural America experienced and adapted to economic shocks caused by the Covid-19 pandemic and, in the process, changed the economic and social landscape. Applying a qualitative research methodology, the present research offers Pennsylvania's Central Susquehanna Valley as a case study, using data from 60 semi-structured interviews. The analyses demonstrate rural businesses' resiliency and adaptive responses, bolstered by embedded rural capitals and the unique characteristics of rural businesses themselves. • Within the business community, adaptive responses exemplified their resiliency thanks to embedded rural capitals and the unique characteristics of rural businesses. From a rural capital point of view, evidence suggests that rural business relied on existing rural capital to weather the crisis: by sharing information and resources with each other; relying on customer loyalty; and counting on worker flexibility when demand fluctuated. From a business characteristics perspective, rural firms tackled the crisis using all the tools and resources they had available, from adjusting and training their workforce, to modifying and adding new products, to reaching out to new customer using e-commerce, to relying on personal savings. The resolute and diverse reactions during Spring 2020 show that rural businesses are not only prepared but also as dynamic as their urban counterparts. • The pandemic not only brought tremendous loss and challenges to rural economies and communities, it also forced drastic changes upon businesses and the rural landscape. From a rural capital viewpoint, the death, prolonged sickness and deterioration of mental health among community members robs material, human, and social resources from the community. At the same time, businesses had time and space during shutdowns to upgrade skills and infrastructure, thus adding more human and material resources. Many businesses did not survive the economic downturn, and some had to reduce their size. At the same time, new businesses opened during the crisis, as owners took advantage of low rent and workforce surplus. • From a business characteristics standpoint, while the changes may be less visible, they may also be more impactful in the rural landscape. Most significantly, the changed relationships between businessowners and workers, and among partners in the supply chain will hopefully be long lasting, creating more rural capital and better working relationships at the factory and beyond. Other important changes include new adoption of technology and automation; new business directions, such as decisions to exploit e-commerce and higher value-added production; and increases in mergers and acquisitions across industries. These changes could make rural America more dynamic and competitive. However, they could also lead to further market concentration in regions that are less diverse, thus raising prices, reducing choices for consumers, and weakening worker bargaining power. • This paper combines theoretical insights from two separate strands of literature focusing on (1) rural capital and (2) business practices to derive a novel conceptual and analytical approach for studying rural businesses' resiliency during crises. Furthermore, it offers empirical evidence that supports theoretical insights into businesses-coping strategies, and factors that comprise rural resiliency in times of crisis. Through 60 semi-structured interviews, the case study resists simplistic depictions of rural America, frequently propagated by American liberals and urban elites, as sluggish, deeply conservative, ignorant, pro-Trump, and closed-minded. Instead, the interviews present a thoughtful and caring community that is constrained in significant ways, and making do with what is available. Material, mental, social, and economic barriers hinder rural businesses, preventing them from accessing a more equitable and sustainable future. Nevertheless, they have persevered thanks to rural capitals created by the land, people, community, and their unique characteristics.