A chamber of commerce, or board of trade, is a form of business network. For example, 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.
A chamber of commerce may be a voluntary or a mandatory association of business firms belonging to different trades and industries. They serve as spokespeople and representatives of a business community. [1] They differ from country to country.
The first chamber of commerce was founded in 1599 in Marseille, France, as the "Chambre de Commerce". [2] [3] [4] [5] The Royal Barcelona Board of Trade was established in 1758. [6]
The world's oldest English-speaking chamber of commerce and oldest chamber of commerce in North America is the Halifax Chamber of Commerce, founded in 1750. [7] [8]
The Glasgow Chamber of Commerce was founded in 1783. [9] However, Hull Chamber of Commerce is the United Kingdom's oldest, followed by those of Leeds and of Belfast in present-day Northern Ireland. [10] [11] [12]
As a non-governmental institution, a chamber of commerce has no direct role in the writing and passage of laws and regulations that affect businesses. It can, however, lobby in an attempt to get laws passed that are favorable to businesses. [13]
The United States Chamber of Commerce has a long history of anti-union lobbying and union-busting in the United States at the local and federal level. [14] [15] [16]
Membership in an individual chamber can range from a few dozen to well over 800,000, as is the case with the Paris Île-de-France Regional Chamber of Commerce and Industry. [17] Some chamber organizations in China 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. [18]
In the United States, chambers do not operate in the same manner as the Better Business Bureau in that, while the BBB has the authority to bind its members under a formal operation doctrine (and, thus, can remove them if complaints arise regarding their services), the local chamber membership is either voluntary or required by law. [19] Some chambers are partially funded by local government, others are non-profit, and some are a combination of the two. [20]
Some chambers have joined state, national (such as the United States Chamber of Commerce and the British Chambers of Commerce) and even international bodies (such as Eurochambres, the International Chamber of Commerce (ICC), and Worldchambers). [21]
Chambers of commerce in the United States can be considered community, city, regional, state, or nationwide (United States Chamber of Commerce). City Chambers work on the local level to bring the business community together to develop strong local networks, which can result in a business-to-business exchange. In most cases, city Chambers work with their local government, such as their mayor, their city council, and local representatives to develop pro-business initiatives. [22] There are also bilateral chambers of commerce that link the business environments of two countries (e.g. Romanian-American Chamber of Commerce, Moldovan–American Chamber of Commerce).
Community chambers of commerce started[ when? ] in the UK and later spread to in the US, becoming city chambers of commerce as communities developed and became larger. Community chambers of commerce are smaller and most[ quantify ] have a limit on numbers of members. [23]
City chambers of commerce have a long history in the US. The Charleston Chamber of Commerce is one of the oldest, dating back to colonial 1773. [24] That same year, Boston's Chamber of Commerce organized a seminal tax protest: The Boston Tea Party. [25]
In 2005 there were 2,800 chambers of commerce in the United States and 102 chambers representing U.S. businesses overseas. [22] According to the Association for Chamber of Commerce Executives (ACCE), there are approximately 3,000 chambers of commerce with at least one staff person and "thousands more established as strictly volunteer entities". [26]
State chambers of commerce are much different from local and regional chambers of commerce, as they work on state and sometimes federal issues impacting the business community. Just as the local chamber is critical to the local business community, state chambers serve a unique function, serving as a third-party voice on important business legislation that impacts the business community and is critical in shaping legislation in their respective state. State Chambers work with their Governor, state representatives, state senators, US congressional leaders, and US Senators. In comparison with state trade associations, which serve as a voice and resource to a particular industry, state chambers are looked to as a respected voice, representing the entire business community to enhance and advocate for a better business environment.
Addressing the national or international need for information is the key service that these chambers of commerce provide. These services are in most cases at no fee or cost to their members; some of them offer personal and/or business services at a very low fee (like memberships to other associations such as the NRA).
Under the compulsory or public law model, enterprises of certain sizes, types, or sectors are obliged to become members of the chamber. This model is common in European Union countries (e.g. France, [27] Germany, Italy, Spain, Austria), as well as Japan and Indonesia. The main tasks of the chambers are foreign trade promotion, vocational training, regional economic development, and general services to their members. 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 consultative function; this means the chambers must be consulted whenever a new law related to industry or commerce is proposed. [28]
In Germany, the chambers of commerce and industry (IHK - Industrie- und Handelskammer) and the chambers of skilled crafts (HwK - Handwerkskammer) are public statutory bodies with self-administration under the inspectorate of the state ministry of economy. Enterprises 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. IHK Munich, the biggest German chamber of commerce, has 350,000 member companies. [29] Germany also has compulsory chambers for "free occupations" such as architects, dentists, engineers, lawyers, notaries, physicians, and pharmacists.
Under the private model, which exists in English-speaking countries like the United States and the United Kingdom, companies are not obligated to become chamber members. [30] 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.
A multilateral chamber is formed of companies and sometimes individuals from different countries with a common business interest towards or in a specific country. It can further be active in representing the interests of local and foreign investors in that specific country, achieved through promotion and proactivity regarding the general business environment. Multilateral chambers of commerce are independent entities strengthening business relations and interactions between all economic players, and their members may benefit from a broad range of activities that enhance the visibility and reputation of their business.
In many countries, Chambers of Commerce are a source of private-sector information. The information is usually gathered by surveying Chamber members. The British Chambers of Commerce Quarterly Economic Survey is an example of a Chambers of Commerce survey that is used by official governmental departments as a guide to the performance of the economy. [31]
The International Chamber of Commerce is the largest, most representative business organization in the world. ICC represents over 45 million businesses in over 170 countries who have interests spanning every sector of private enterprise.
The United States Chamber of Commerce (USCC) is a business association advocacy group. It is the largest lobbying group in the United States. The group was founded in April 1912 out of local chambers of commerce at the urging of President William Howard Taft and his Secretary of Commerce and Labor Charles Nagel. It was Taft's belief that the "government needed to deal with a group that could speak with authority for the interests of business."
The American Chamber of Commerce in Taiwan is an international business association based in Taipei City, Taiwan, with about 1,100 members representing over 580 companies across various sectors.
The National LGBT Chamber of Commerce (NGLCC) is a U.S. not-for-profit advocacy group that aims to expand the economic opportunities and advancement of the LGBT business community. Its headquarters are in NW in Washington, D.C. NGLCC is the exclusive certifying body for LGBT-owned businesses known as LGBT Business Enterprises (LGBTBEs), and advocates for LGBT business inclusion in corporate and government supplier diversity programs. In October 2017, the organization changed its name from the National Gay & Lesbian Chamber of Commerce to National LGBT Chamber of Commerce to better reflect the entire LGBT business community it serves.
The Austrian Federal Economic Chamber functions as the federal parent organization for the nine State Chambers and 110 trade associations for different industries within Austria's system of economy. Most State Chambers and associations have local offices to provide services in close proximity to members.
The London Chamber of Commerce and Industry (LCCI) is London’s key hub for the city's business community. It supports its members’ businesses through a range of services, advocates on behalf of London’s business community in important forums of policy debate, and promotes ‘Global London’ as the best city for doing business, whether it's for trading, investing, learning, or finding new commercial partners.
The ATA Carnet, often referred to as the "Passport for goods", is an international customs document that permits the tax-free and duty-free temporary export and import of nonperishable goods for up to one year. It consists of unified customs declaration forms which are prepared ready to use at every border crossing point. It is a globally accepted guarantee for customs duties and taxes which can replace the security deposit required by each customs authority. It can be used in multiple countries in multiple trips up to its one-year validity. The acronym ATA is a combination of French and English terms "Admission Temporaire/Temporary Admission". The ATA carnet is now the document most widely used by the business community for international operations involving temporary admission of goods.
Federation of Bangladesh Chambers of Commerce and Industries is the apex trade organization of Bangladesh playing consultative and advisory role in safeguarding the interests of the private sector in the country.
The Lahore Chamber of Commerce & Industry(LCCI) was established in 1923. It was established to serve and represent the interests of the business community in Lahore, Pakistan.
Eurochambres is the Association of European Chambers of Commerce and Industry. The association is a representative organisation in Brussels for businesses in Europe through 42 members and a European network of regional and local chambers. It was established in 1958 as a direct response to the creation of the European Economic Community.
The Gwinnett Chamber of Commerce', is Gwinnett County, Georgia's non-profit, member-funded business advocacy organization, representing a number of businesses within Gwinnett and the metro Atlanta region.
Association of German Chambers of Industry and Commerce is a German 'chamber,' similar to an English guild but is required under German law and provides political influence of a trade union. This organization was formerly known as the Deutscher Industrie- und Handelstag or DIHT.
Federation of Telangana Chambers of Commerce and Industry (FTCCI) is an industry body in Telangana.
Pakistan Institute of Fashion and Design (Urdu: پاکستان انسٹی ٹیوٹ آف فیشن اینڈ ڈیزائن), also referred as PIFD, is a public design institution primarily located in Lahore, Punjab, Pakistan. It was established in 1994 as the Pakistan School of Fashion Design (PSF) by the Trade Development Authority of Pakistan, a department within the Ministry of Commerce. The close collaboration between the textile industry, Erasmus+, Commonwealth Association, business and arts communities is intended to foster multi-disciplinary education and research.
Arab British Chamber of Commerce established 6 February 1975, is an international trade organisation based in London. Although a not-for-profit body, its role is to encourage, promote and facilitate trade, investment and joint ventures since 1975 between participating representatives of Arab states and of the United Kingdom (UK).
The Indo-German Chamber of Commerce (IGCC) is the largest German bi-national Chamber abroad and the largest Chamber of Commerce in India. It acts as primary contact for Indian and German companies who are willing to establish a business in the other country. It works in close cooperation with the Chambers of Industry and Commerce in Germany (IHKs) and the Association of German Chambers of Industry and Commerce (DIHK).
AHK Thailand or the German-Thai Chamber of Commerce (GTCC) is a non-profit entity which promotes bilateral economic relations between Germany and Thailand. It is a member of the German Chambers of Commerce Worldwide Network (AHKs), with 150 locations in 93 countries around the world.
The German Chambers of Commerce Abroad support German companies with establishing and extending business relations in 90 countries and 130 locations. The AHKs also promote trade and joint business between Germany and a foreign country.
The American Chamber of Commerce in Shanghai is an organization that promotes American businesses in China through its main offices in Shanghai. AmCham Shanghai was founded in 1915 as the third American Chamber of Commerce established outside the United States, and now has 3,000 members from 1,500 companies. Its membership ranges from large corporations to small startups and includes companies from diverse industries. As a non-profit, non-partisan business organization, AmCham Shanghai promotes free trade, open markets, private enterprise and the unrestricted flow of information.
The Islamic Chamber of Commerce, Industry, and Agriculture (ICCIA) is an international organization that represents the private sector of 57 Islamic countries. It was established in 1977 in Karachi, Pakistan, and has regional offices in several countries. The ICCIA aims to promote trade, investment, and cooperation among Islamic countries. It also provides services to its members, such as market research, legal advice, and trade promotion.