Chamber of Commerce

From CEOpedia | Management online

Chamber of Cmmerce is an association bringing together businesses of region, city or country in order to promote the commercial interests of the region concerned. This is an organization of enterprises which are aimed at continuous development of their collective interests. Chamber of Commerce is the business federation representing the interests of many various businesses and organizations of every size and sector. Traders and businessmans from cities, villages and other areas unite form these local societies in order to advocate on behalf of the whole commerce community. The mission of chamber of commerce is to build relationships between businesses at every level: locally, nationally and internationally.

General features of Chambers of Commerce

Chambers's organizational forms vary depnding on the countries in which they are situated. However, there are also some common features that characterise evry chamber of commerce (V.I. Fedotov, 2007; p. 3-4):

  • Particular chamber operate in one specific area
  • Chambers accept members without sectoral restrictions
  • Chambers are protected by national laws
  • The membership in particular chambers of commerce can be mandatory or voluntary - it depends on national legislation
  • Chambers providing members a collective voice in advocacy to represent and protect their interests.
  • Chambers perform public functions as for example register enterprises
  • System of chambers is hierarchical. We can single out a local, regional, national, and international chambers of commerce (V.I. Fedotov, 2007; p. 3-4).

Public law and private law systems of Chambers of Commerce

Chamber systems can be divided into public law and private law chambers. Both forms differ in many respects. The substantial difference concerned the rules of participation. Regards to public law chambers the membership is mandatory. In return for participation enterprises need to pay fees. This model generate considerable resources in order to support businesses and undertake various trading activities on a large scale. The public chambers are much better resourced than a private on. They also have a privileged status. However their ability to implement effective involvement is limited due to significant dependence on the state. The first public law system evolved in France. Nowadays, this kind of chamber is the most common in majority European Union countries, inter alia in Germany, Austria, Italy, Spain. In the contrary to public law chambers in privete one the membership is voluntary. Private law chambers respresents an independent opinion of their members. When businesses do not want to participate in association, or disagree with chamber policies, they can withdraw at any time (B. Bennett, 2011's.23). The significant adventage of private structure is their independency and autonomy. They are closer to market needs and can develop accociated businesses through local network. However, income from participaton may be limited as membership is not mandatory. As a result of this the private law chambers usually operate on smaller scale than a public chambers. In addition to these models sometimes we can single out some mixed models of chambers. That kind of association we can find in Japan and Thailand. They are characterised by public law status but voluntary membership (M.Heseltine,2012; p. 7).

Chamber's services and support

Chambers of Commerce offer a range of business services and support for their members. Theu provide training and consultancy services such as human resource development programmes, courses for upgrading skills and technological knowledge, business meetings and conferences. Chambers take care of trade and business development. They arrange investment opportunities for memebrs, through organising tradee, exhibitions and meetings between members. In case of any problems or enquiries participants may also count on meritorical support. Chambers of commerce provide also up to date business information for example mdifications in government rules and regulations (J. Tan Lan Eng, 2000; p. 6-10).

Examples of Chamber of Commerce

  • US Chamber of Commerce: The US Chamber of Commerce is the world’s largest business organization representing the interests of more than 3 million businesses of all sizes, sectors, and regions. They work to create and promote policies that help businesses compete in the global economy and create jobs. They also promote free enterprise and represent the interests of businesses on the national, state, and local levels.
  • British Chambers of Commerce: The British Chambers of Commerce is a network of accredited chambers of commerce representing more than 50,000 businesses of all sizes and sectors. They provide advice, support, and services to businesses across the UK. They also lobby the government on behalf of their members and represent the views of business owners in national policy debates.
  • Philippine Chamber of Commerce and Industry: The Philippine Chamber of Commerce and Industry is the largest and most influential business organization in the Philippines. It is composed of more than 24,000 members representing various sectors of the economy. They provide a platform for businesses to engage in policy dialogue and advocacy, as well as promoting investment opportunities, encouraging entrepreneurship, and encouraging business growth.

Advantages of Chamber of Commerce

A Chamber of Commerce is a powerful tool for businesses, providing a range of advantages to its members. These include:

  • Increased Access to Resources: Chamber of Commerce members gain access to a variety of resources such as business advice, networking and promotional opportunities, and access to local and international markets.
  • Professional Development: Chamber members can benefit from professional development opportunities such as conferences, seminars, workshops, and other educational activities.
  • Networking Opportunities: Chamber of Commerce membership provides businesses with the opportunity to network with other businesses in their local area, as well as with businesses from other regions.
  • Representation: Chamber of Commerce members are represented at local, state, and national government levels. This provides businesses with an effective way to influence policy and legislation.
  • Increased Visibility: Chamber of Commerce members benefit from increased visibility in the local community, as well as increased visibility in the business world. This can result in increased sales and profits.

Limitations of Chamber of Commerce

  • The Chamber of Commerce is a powerful tool for businesses to collaborate and promote their interests, however, it has some limitations.
  • The Chamber of Commerce has no legal authority to enforce policies or regulations. It relies on its members to voluntarily comply with its decisions and initiatives.
  • The Chamber of Commerce is limited in its ability to represent small businesses, as most of its initiatives are designed to meet the needs of larger corporations.
  • The Chamber of Commerce is often seen as a political tool, with members promoting their own interests over those of the community.
  • The Chamber of Commerce is often viewed as a closed organization, with limited membership and exclusive access to certain benefits.
  • The Chamber of Commerce is limited in its ability to address global issues, as its focus is primarily on local or regional business.
  • The Chamber of Commerce is limited in its ability to influence governmental policies and regulations that affect businesses.
  • The Chamber of Commerce does not have the authority to require businesses to comply with its regulations or initiatives, and must rely solely on voluntary compliance.

Other approaches related to Chamber of Commerce

The Chamber of Commerce is not only an association of businesses in a certain region, city or country, but can also be used to undertake a variety of other initiatives. These approaches include:

  • Building relationships between the business community and government, which can be beneficial for both parties. For example, the Chamber of Commerce can act as an intermediary between government and businesses, helping to ensure that the government is aware of business needs, and helping businesses to understand government regulations.
  • Creating a platform for businesses to network, collaborate, and exchange information. This can help businesses to identify opportunities, solve problems, and collaborate on projects.
  • Acting as a source of information for businesses, providing information on relevant regulations, industry trends, and other topics of importance to the business community.
  • Supporting businesses through advocacy and lobbying for changes in government regulations.

In summary, the Chamber of Commerce can be used to bring together businesses in a region and support them in a variety of ways, ranging from building relationships to providing a platform for networking and exchange of information.


Chamber of Commerce — recommended articles
Employers association — European Coal and Steel Community — Land banker — World Packaging Organisation — Global bank — Public tasks of local government — State administration — Innovative systems — Bank for International Settlements

References

Author: Aneta Walczyk

Retrieved from "https://ceopedia.org/index.php?title=Chamber_of_Commerce&oldid=90259"