What are Services?
A service is an economic activity that is intangible, cannot be stored, or result in ownership. A service is consumed at the point of sale. Services are one of the two key components of economics, the other being goods. With trade-in-services accounting for the bulk of export earnings for CARICOM member countries, the services sector is viewed by many as one of the few viable vehicles which will stimulate economic development.
Examples of Service Providers/Service Sector
- Beauticians and hair dressers
- Taxi Driver
- Tour Guides
- Massage Therapists
- Web-site designers
- Custom brokers
- Vehicle repair and maintanence
- Doctors & nurses
- Bankers and financial service providers
- Real estate agents
“If I build a factory where people take fresh peas and put them in cans that’s a ‘manufacturing’ facility full of manufacturing jobs and people who ‘make things.’
But if I build a facility where people take fresh peas, mix them with some basil and a touch of mint, plus olive oil, parmigiano reggiano, and pine nuts then purée them to serve you a delicious pea pesto that’s a service job.
Similarly if I make pasta then dry it and stick it in boxes, I’m manufacturing. If I make fresh pasta and serve it to you on a plate with my pea pesto that’s services.
The difference between manufacturing and services is not an ontological void between making things and not making things. It’s really a gap between putting things in boxes and not putting them in boxes.
Like if you build a bookshelf and ship to a store and I buy it, that’s manufacturing. If I hire you to come to my house and install custom built-in shelves, that’s services.”
– Matt Yglesias