Chamber of commerce

Characteristics

Membership in an individual chamber can range from a few dozen to well over 800,000 members, as is the case with the Paris Île-de-France Regional Chamber of Commerce and Industry. Some chamber organizations in China report even larger membership numbers. Chambers of commerce can range in scope from a single neighborhood within a city or town to the entire world, as with the International Chamber of Commerce.

In the United States, chambers do not operate in the same manner as the Better Business Bureau (BBB). The BBB has the authority to bind its members under a formal operating doctrine and can therefore remove them if complaints arise about their services. Chambers in the U.S. have no such authority, and membership is voluntary. Some chambers are partially funded by local government, others are non-profit, and some are a combination of the two.

Some chambers have joined state, national (such as the United States Chamber of Commerce and the British Chambers of Commerce), and international bodies (such as Eurochambres, the International Chamber of Commerce, and the World Chambers Federation).

Chamber models

Community, city and regional chambers

Chambers of commerce in the United States can operate at the community, city, regional, state, or national level. City Chambers work at the local level to bring the business community together and develop strong local networks, which can lead to business-to-business exchanges. In most cases, city chambers work with their local government, such as the mayor, city council, and other local representatives, to develop pro-business initiatives. There are also bilateral chambers of commerce that link the business environments of two countries (e.g., the Romanian-American Chamber of Commerce and the Moldovan–American Chamber of Commerce).

Community chambers

Community chambers of commerce started 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 have a limit on numbers of members.

City chambers

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. That same year, Boston's Chamber of Commerce organized a seminal tax protest: The Boston Tea Party.

In 2005 there were 2,800 chambers of commerce in the United States and 102 chambers representing U.S. businesses overseas. 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".

State chambers

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.

National and international chambers

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).

Compulsory or public-law chambers

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, 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.

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. Germany also has compulsory chambers for "free occupations" such as architects, dentists, engineers, lawyers, notaries, physicians, and pharmacists.

Continental/private law chambers

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. 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.

Multilateral chambers

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.

Surveys

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.