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Chamber of commerce

Overview

A chamber of commerce (also referred to in some circles as a board of trade) is a form of business network, e.g., a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community. Local businesses are members, and they elect a board of directors or executive council to set policy for the chamber.

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Encyclopedia

A chamber of commerce (also referred to in some circles as a board of trade) is a form of business network, e.g., a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community. Local businesses are members, and they elect a board of directors or executive council to set policy for the chamber. The board or council then hires a President, CEO or Executive Director, plus staffing appropriate to size, to run the organization.

The first chambers of commerce were founded in 1599 in continental Europe (Marseille, France and Brugge, Belgium). The world's oldest English-speaking chamber of commerce is that of New York City, which was established in 1769. The largest chamber of commerce in the UK is the North East Chamber of Commerce with over 4,000 members. The oldest Chamber in the English speaking world with continuous records is the Glasgow

Glasgow

Glasgow is the largest city in Scotland and third most populous in the United Kingdom. The city is situated on the River Clyde in the country's west central lowlands...

Chamber of Commerce founded in 1783.

Characteristics

Membership in an individual chamber in an area can range from a few dozen to well over 300,000 (as is the case with the Paris Chamber of Commerce and Industry

Paris Chamber of Commerce

The Paris Chamber of Commerce is a Chamber of Commerce of the Paris region. It defends the interests of 310,000 corporations of the Paris, Hauts-de-Seine, Seine-Saint-Denis, and Val-de-Marne départements that create 20% of France's GDP.The CCIP was created on February 25 1803 by Napoléon Bonaparte...

). Some chamber organizations in China

China Council for the Promotion of International Trade

The China Council for the Promotion of International Trade is a trade body of the Chinese government founded in 1952. It also goes by the name of the China Chamber of International Commerce ....

report even larger membership numbers. Chambers of commerce can range in scope from individual neighborhoods within a city or town up to an international chamber of commerce.

Chambers do not operate in the same manner as the Better Business Bureau

Better Business Bureau

The Better Business Bureau , founded in 1912, is a corporation consisting of several private business franchises of local BBB organizations based in the United States and Canada, which work together through the Council of Better Business Bureaus . The BBB goal is to foster a fair and effective...

in that, while the BBB has the authority to bind its members under a formal operations doctrine (and, thus, can remove them if complaints arise regarding their services), the local chamber membership is strictly voluntary. In addition, Chambers represent the interests of all businesses, while the BBB represents the interests of the general public.

Chambers of commerce also can include economic development

Economic development

Economic development is the increase in the standard of living of a nation's population associated with sustained growth from a simple, low-income economy to a modern, high-income economy...

corporations or groups (though the latter can sometimes be a formal branch of a local government, the groups work together and may in some cases share office facilities) as well as tourism and visitors bureaus.

Some chambers have joined state, national, and even international bodies (such as Eurochambres

Eurochambres

EUROCHAMBRES is the Association of European Chambers of Commerce and Industry. The association is one of the largest business representative organisation in Brussels, representing over 19 million companies through its network of 2000 Chambers of Commerce and Industry...

, the International Chamber of Commerce

International Chamber of Commerce

The International Chamber of Commerce is the largest, most representative business organization in the world. Its hundreds of thousands of member companies in over 130 countries have interests spanning every sector of private enterprise....

(ICC), Worldchambers or the American Chamber of Commerce Executives). In the majority of countries, the use of the term "chamber of commerce" is regulated by federal law, though this is not the case in the US. Currently, there are about 13,000 chambers registered in the official Worldchambers Network registry, and the chamber of commerce network is the largest business network globally. This network is informal, with each local chamber incorporated and operating separately, rather than as a chapter of a national or state chamber.

Chamber models

There are basically three chamber business membership models worldwide, 'compulsory / public law','continental / private law' or ´bilateral´.

Compulsory/Public law chambers

Under the compulsory or public law model, companies of a certain areas are obliged to become members of the chamber. This model is common in European Union

European Union

The European Union is an economic and political union of 27 Member States, located primarily in Europe. Committed to regional integration, the EU was established by the Treaty of Maastricht on 1 November 1993 upon the foundations of the pre-existing European Economic Community...

countries (France

France

France , officially the French Republic , is a country located in Western Europe, with several overseas islands and territories located on other continents. Metropolitan France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean...

, Germany

Germany

Germany , officially the Federal Republic of Germany , is a country in Central Europe. It is bordered to the north by the North Sea, Denmark, and the Baltic Sea; to the east by Poland and the Czech Republic; to the south by Austria and Switzerland; and to the west by France, Luxembourg, Belgium,...

, Italy

Italy

Italy , officially the Italian Republic , is a country located on the Italian Peninsula in Southern Europe and on the two largest islands in the Mediterranean Sea, Sicily and Sardinia. Italy shares its northern, Alpine boundary with France, Switzerland, Austria and Slovenia...

, Spain

Spain

Spain , officially the Kingdom of Spain , is a country located in southwestern Europe on the Iberian Peninsula.The Spanish constitution does not establish any official denomination of the country, even though España , Estado español and Nación española are used interchangeably...

). The main tasks of the chamber are foreign trade promotion, training, and general services to companies. The chambers were given responsibilities of public administration in various fields by the state which they exercise in order management. The chambers also have a consultive function; this means the chambers must be consulted whenever a new law related to industry or commerce is proposed.
In Germany the chambers of commerce and industry (IHK - Industrie- und Handelskammer) and the chambers of the skilled crafts and small businesses are a public statutory body with self-administration under the inspectorate of the state ministry of economy. The members of a German chamber are members by law according to the chamber act (IHK-Gesetz) of 1956. Because of this, such chambers are much bigger than chambers under private law. The IHK Munich for example as the biggest German chamber of commerce has 310.000 member companies. In the German system there are also chambers for the so called "free occupations": architects, dentists, engineers, lawyers, notaries, physicians and pharmacists.

Continental/Private law chambers

Under the private model, which exists in English-speaking countries like USA, Canada

Canada

Canada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean...

or the UK, companies are not obligated to become chamber members. However, companies often become members to develop their business contacts and, regarding the local chambers (the most common level of organization), to demonstrate a commitment to the local economy. Though governments are not required to consult chambers on proposed laws, the chambers are often contacted given their local influence and membership numbers.

Bilateral Chambers

A bilateral chamber of commerce is an organisation formed of individuals and companies who share a common interest in trade and commerce between two countries. The role of the chamber is to represent and further the interests of each of its member countries. This is achieved through the promotion and encouragement of bilateral trade and investment.

Bilateral chambers of commerce exist as independent entities yet maintain a close relationship with their embassy and/or consulate - playing an integral role in strengthening bilateral relations and economic interactions. Members of a bilateral chamber benefit from a useful range of business services, support and advice aiming to help fulfil each member's professional goals.

Bilateral chambers form a key component in the creation, growth and development process of a company or individual seeking to operate in a foreign business environment. The opportunities and advantages which membership confers should be considered essential in light of the chamber's culturally sensitive insight and in depth knowledge of the respective countries political and economic structure.

The core activities of a bilateral chamber of commerce include:

Provision of useful business contacts
Business services, including translation, interpreting and market research
Events and Networking opportunities
Business courses and seminars
Monitoring of new legislation proposals which might affect member's interests