factors affecting the location decision of service business

• cost of site: premises will often be smaller for services compared to manufacturing bases, the cost of site must fit the budget that the business can afford
• customer proximity: proximity to customers is vital is service sector business as customers often choose local business that are most convenient -> not a requirement for online business
• government influence: similar to manufacturing businesses, service businesses may recieve government grants to set in a local area to support the local economy (especially because they provide jobs)
• accessibility to customer: need to be easily accessed; this could mean parking for customers or having suitable transport links such as being on a bus line or train line
• availibility of skilled labour: service industries are fare more labour intensive and thus will need to locate where there is a ready supply of skilled workers