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Old Heat CERB Feasibility Study | 29 <br />Definition: Additive firms generate <br />external revenue by selling goods <br />or services outside the region, thus <br />bringing new financial capital into the <br />community. Often labelled as “base <br />industry” enterprises. <br />Characteristics: <br />• Expand the economic base <br />• May rely on relatively low-wage <br />or low-skill labor <br />• Provide positive but modest <br />contributions to long-term <br />prosperity <br />ADDITIVE ENTERPRISES <br />Examples: <br />• Food processing plants: process locally grown products for national <br />markets. <br />• Telemarketing centers: export service work with limited career progression. <br />• Low-skill manufacturing operations: bring jobs but rarely promote <br />innovation or regional integration. <br />Additive enterprises increase total income in the community but rarely build <br />upward mobility or innovation capacity. <br />Definition: Accelerative firms not <br />only add value to the local economy, <br />but they also increase the region’s <br />capacity to grow more high-value firms <br />in the future. <br /> <br />ACCELERATIVE ENTERPRISES <br />stock. <br />• Dark factories: fully automated facilities offering no local job base. <br />• Vacation/short-term rental (AirBnB, VRBO, etc.) portfolios owned out-of- <br />region: shift housing from residents to tourists, with revenue leakage. <br />• Externally owned casinos: target local customers without bringing in <br />outside revenue. <br />• Company Towns <br />• Enclave Industries <br />Definition: These firms replace <br />imported goods and services with <br />locally produced equivalents, retaining <br />value that would otherwise leave the <br />region. Situations are essential for <br />retaining regional profits. <br />Characteristics: <br />• Primarily serve local markets <br />• Typically, non-base industries. <br />• May provide modest job creation but limited wage growth <br />• In positive cases, additional enterprises help a community retain revenues <br />otherwise spent in other locations. <br />• In negative cases, additional enterprises reduce revenues spent in other <br />enterprises in the local ecosystem by directly competing in a community’s <br />limited market. <br />Wealth Retaining Examples: <br />• Locally owned restaurants: circulate money locally and reflect community <br />character. <br />• Auto repair shops, hair salons, and service-based microenterprises <br />• Local hotels and motels, if locally owned and managed <br />• While valuable for community resilience, these businesses typically do not <br />expand the region’s economic base unless they transition toward exporting <br />goods/services. <br />RETENTIVE ENTERPRISES