Service Industry (Local Economic Base)

Definition: In local economic-base analysis, businesses primarily serving local residents and recirculating income within the community. This is often called the nonbasic sector.

Example

A neighborhood grocery store and local repair business serve residents whose earnings support local spending.

Keep the distinction clear

This study usage differs from the broad national category of service industries. A service business selling mainly to outside customers can bring new income into the local economy.

Related terms

Base Industry · Economic Base Analysis · Household

Keep studying

FREC Course II Syllabus: What to Study for the Broker State Exam

References: California DRE: real estate glossary

Pronunciation (US): SUR-vis IN-duh-stree (capitals show stress)

Pronunciation reference: Merriam-Webster