Community-based economics or community economics is an economic system that encourages local substitution. It is similar to the lifeways of those practicing voluntary simplicity, including traditional Mennonite, Amish, and modern eco-village communities. It is also a subject in urban economics, related to moral purchasing and local purchasing.

The community-based economy can refer to the various initiatives coordinated through multiple forms of interactions. These interactions may involve some form of work performance; project participation; and/or relationship exchange. The forms of interaction can exclude the need to contract; can do away with the need to include some form of monetisation; as well as be free from the need to establish a structure of hierarchy. Community-based economies have been seen to involve aspects of social bonding; value promotion; and establishing community-orientated social goals.

It has been suggested that communities that meet their own needs need the global economy less. "Local-economy theory" introduces insights into new economic development that honours ecological realities and finds efficiencies in small-scale, shared knowledge at the community level.

Community-based economies have been seen to focus on the idea that the “local community should be the focal point of development”. In addition, resources and skills which are sourced locally are seen to play a pivotal role in the community. A community economies approach is interested in diverse activities that contribute to the well-being of both people and the planet. Such actions seek to help people survive well; produce and distribute surplus; transact goods and services more fairly; and invest in ways to support a better future. A community economies approach involves identifying and acknowledging the economic activities that contribute to the well-being of people and the planet and considers ways that these activities may strengthen and multiply. Community-based economics starts by acknowledging the local context and valuing the diverse economic activities and possibilities already present.

In the Philippines, the Jenga Community Partnering Project involved working with groups of community members to build on existing individual and community assets. Community economies researchers point out that the 'community' in community economies is not about pre-existing communities (such as those based on a shared identity or location). Instead, the community is a process of being with others, including the world around.

Community-based development is a form of decentralisation that "devolves authority to the most local community level". Economic development projects target the poor, often in developing countries. There have been mixed results from a limited number of studies endeavouring to explore the potential for success from community-based decentralised programs. The World Bank is on record to have increased funding for community-based development from a minimum of $325 million in 1996 to a minimum of $3 billion in 2003.

Community approaches to poverty reduction address social problems that governments and the voluntary sector usually address. However, these typically incorporate methods employed by the private sector.

Community-based tourism (CBT) has been advanced as a strategy associated with community development and poverty alleviation through tourism. CBT "has become one of the sector's fastest-growing segments globally...". It is a form of tourism that started in the 1970s and is explicitly aimed at disadvantaged communities. Common challenges are linked to the scarcity of material and non-material (such as skill and education) of poor community members.