Rural America's Entrepreneurial Edge May Be Hiding in Plain Sight

Capital One Insights Center and the Center on Rural Innovation find natural amenities are the strongest predictor of rural entrepreneurship, while workforce experience and business relationships are associated with rural entrepreneurial strength

MCLEAN, Va., Oct. 14, 2026 /PRNewswire/ -- New research from the Capital One Insights Center and the Center on Rural Innovation (CORI) suggests the answer to rural job growth may be hiding in plain sight. Small businesses account for more than half of rural employment, according to the U.S. Small Business Administration. Yet the most recent reporting shows that rural employment grew just 0.6% from 2023 to 2024, compared to 1.3% growth in metropolitan areas during the same time frame. These realities underscore the importance of understanding which local conditions support rural business creation and economic growth.

Today's report demonstrates that communities' entrepreneurial advantages may lie in strengths they already possess, challenging conventional assumptions about what drives entrepreneurship and growth in rural America.

The new report, "Roots of Prosperity: The Drivers of Rural Entrepreneurship," examines seven forms of community capital associated with entrepreneurial outcomes across rural America — natural, human, cultural, social, built, financial and political. It pairs national county-level analysis with qualitative research in Bozeman, Montana, to explore how local assets can reinforce one another and help entrepreneurs start and grow businesses. Rather than prescribing a single formula for growth, the report finds that rural entrepreneurship thrives when communities identify their unique strengths and invest in them to help businesses start and grow.

"There is no single formula for building a strong rural economy," said Dr. Shena Ashley, President of the Capital One Insights Center and Vice President of Community Impact and Investment. "What this research shows is that some of the most powerful opportunities for growth are rooted in the strengths communities already have. Understanding those differentiators and how they work can help inform how we support entrepreneurs and communities and create the conditions for entrepreneurs to start, grow, and build for the future."

Natural capital – including landscapes, recreational opportunities and other local amenities – emerged as the strongest and most consistent predictor of rural entrepreneurship across the seven categories examined. These assets can help communities attract and retain skilled workers and founders while creating business and economic opportunities tied to the landscape. The research suggests communities can build on their existing natural strengths, even without nationally recognized attractions.

"What this research makes clear is that having community assets isn't the same as putting them to work for entrepreneurs," said Amanda Weinstein, Director of Research at the Center on Rural Innovation and coauthor of the report. "Too many rural economies were built to extract from a place and its people rather than invest in them. Today, the rural communities seeing more entrepreneurship are doing the opposite, treating their landscape as a lasting asset and using it to build the talent, networks, and access to capital and support that founders need. This keeps wealth local and makes these places more resilient. A culture of self-reliance and openness to new ideas helps, too. Bozeman shows what that looks like, but the goal isn't to copy Bozeman. It's to help every rural community see its own mix of assets and build on them to support entrepreneurs."

Key Findings

Building on the Rural Entrepreneurship Index, developed by CORI and the Capital One Insights Center to identify rural counties with particularly strong entrepreneurship outcomes, the research examines what distinguishes these places. Key findings include:

• Natural amenities are a leading entrepreneurial advantage. Natural capital is the strongest predictor of rural entrepreneurship in the analysis, particularly in rural counties. Landscapes, recreation and other amenities can help communities attract and retain skilled workers and founders while creating opportunities for businesses built around those assets.

• Traditional economic development incentives do not tell the whole story. Political capital is the only one of the seven capitals consistently associated with lower entrepreneurship. The findings point toward broadly shared investments — including broadband, workforce training, childcare, healthcare and entrepreneurial infrastructure — as important components of a strong local ecosystem.

• Rural America's older population is an entrepreneurial asset. Median age is positively associated with rural entrepreneurship. The research notes that experienced workers can bring industry knowledge, professional networks, and financial resources that help them identify and pursue business opportunities.

• Broadband is important, but it takes more than connectivity to build an entrepreneurship ecosystem. Built capital overall is not significantly associated with rural entrepreneurship. Infrastructure appears to have greater impact when paired with coworking spaces, mentorship, incubators, accelerators, and other programs that connect entrepreneurs with one another and with resources.

• Relationships can matter as much as institutional investment. Rural entrepreneurs rely on local networks such as community banks, Community Development Financial Institutions (CDFI), business associations, veteran networks, and local nonprofits. Relationship-driven connections are associated with stronger rural entrepreneurship.

Explore the Findings

The Rural Entrepreneurship Index's interactive map allows users to explore how rural counties across the country perform and identify the community strengths associated with entrepreneurship in different places.

The research also builds on Capital One and CORI's convening in Bozeman, Montana, which brought together local entrepreneurs, small business owners, policymakers from all levels of government, educators, lenders, and civic leaders to explore the conditions shaping entrepreneurship in the region. Those conversations provided on-the-ground qualitative research and context for the national data and helped illuminate how community capitals translate into entrepreneurs' lived experiences. Specifically, founders repeatedly pointed to "warm introductions" and a "one degree of separation" as key advantages of the local entrepreneurial ecosystem, underscoring how trusted relationships can help entrepreneurs navigate resources and opportunities.

This research reflects Capital One's broader strategy to advance economic opportunity through its five-year, $265 billion Community Benefits Plan, which includes increased access to credit for small businesses in rural and low-to-moderate-income communities, strengthening community development financial institutions, and investing in local economic infrastructure. By helping communities better understand their entrepreneurial strengths, the research can help local leaders, policymakers, funders and other stakeholders identify opportunities for investments that build on existing assets and strengthen economic conditions and entrepreneurship over time.

Click here to read the full report.

About the Capital One Insights Center

The Capital One Insights Center combines Capital One research and partnerships to produce insights that advance economic opportunity. As a platform for data and dialogue, the Center strives to help changemakers build thriving communities and develop financial tools that enrich lives. The Center draws on Capital One's deep market expertise and legacy of revolutionizing the credit system through the application of data, information and technology.

About the Center on Rural Innovation

The Center on Rural Innovation (CORI) is a 501(c)(3) nonprofit organization that partners with rural leaders across the country to build tech economies that support scalable entrepreneurship and lead to more tech jobs in rural America.

Media Contact

For media inquiries, please contact: Rachel Becker, [email protected]

SOURCE Capital One