Running a business isn’t an easy feat. Particularly in this hyper-expansion business era, it seems like there is a new challenge every day. Business owners are always seeking new ways to market and grow their ventures. Joining a local chamber of commerce is a way to help you navigate the corporate landscape. Although you can find solutions online, joining a chamber of commerce may give you region-specific answers that are more relevant and precise.
Table of Contents
What is a chamber of commerce?
5 chamber of commerce categories
Functions of a chamber of commerce
Final thoughts
What is a chamber of commerce?
The first chamber of commerce started operating in France in 1599. However, the U.S. Chamber of Commerce came in 1912, much later than France. Today, chambers of commerce are found worldwide and vary widely in their focus.
It is a business network comprising influential leaders who work together to optimize growth and create more opportunities for the business community. Members discuss local, regional, or international policies and problems. They aim to remove obstacles and create a better, business-friendly environment. Each chamber elects its own leadership and decides what agenda to pursue. Note that the chamber doesn’t make laws. Instead, they work to impact pro-business policies by lobbying legislators.
Joining a chamber of commerce enables small business owners to access technologies and resources. They get access to information they may not be able to gain individually. Chambers of commerce are typically categorized as 501(c)(6) organizations under federal tax law, meaning they have nonprofit status. They don’t receive any public funding and operate by collecting membership fees or fundraisers.
5 chamber of commerce categories
Chambers of commerce can operate in several different formats. They vary widely in terms of focus and scale. Here are the five categories that usually exist in business communities:
1. Regional (local) chamber of commerce
These aren’t so expensive to join and focus on geographic or regional issues. They work to resolve problems around local economic development as well as the specific concerns of the business community. For example, a local chamber might advocate for better infrastructure in the area to support small businesses. Or, they can host networking events to connect entrepreneurs.
Such chambers could be organized by the city, region, or neighborhood according to the community’s size and the severity of corporate difficulties. For instance, there are multiple chambers in New York City. No matter their size, these groups work with local leaders to share business concerns.
2. State chamber of commerce
A statewide chamber of commerce is present in most states. The chamber membership is available for every business operating in the state radius. This organization operates beyond regional boundaries and has more authority than the city chamber. They often focus on state laws, like tax rules. They may also support national laws that create more business opportunities, such as building better infrastructure.
3. National and international chambers of commerce
This chamber deals with more significant issues like imports and international trading. Membership for these is well-suited for corporations dealing with worldwide clients or vendors from multiple states. One of the largest is the International Chamber of Commerce (ICC), founded in 1919. It represents over 45 million international companies and voices their concerns on a larger scale.
The ICC significantly contributed by creating international commercial terms, or Incoterms. These are standard rules that explain shipping and trade terms. First introduced in 1936, Incoterms are now used worldwide. They help buyers and sellers know their responsibilities in foreign trade contracts.
4. Mandatory chamber of commerce
Some countries make it mandatory for companies to join a chamber of commerce. Besides providing a certain level of self-regulation, it also promotes member companies. They all work in collaboration to enhance economic development and oversee employee training. Such chambers are found mostly in Japan and Europe.
5. Specific business interests
Some chambers of commerce are created for specific industries or groups of people. These chambers include businesses from the same sector or owners with shared backgrounds. This helps members focus on similar issues and goals. For example, the US Women’s Chamber of Commerce only allows small businesses that are at least 51% owned and operated by women. It works to create opportunities for success and supports policies that help women and families.
Functions of a chamber of commerce
Entrepreneurs often wonder if joining a chamber of commerce is worth it—especially startup owners who question its benefits.
If you are considering it, the reasons below might help you decide.
Networking
These organizations present a wonderful opportunity to expand the network. Members meet and form a community that stands together through thick and thin. Over time, these relationships could lead to valuable corporate partnerships.
They provide a platform for businesses to raise their voices about their troubles. Advocacy efforts by the chamber ensure that these concerns are heard and addressed.
Access discounts
Chamber members may also get discounted offers from others in their network. In fact, some chambers even have this policy that legislates the members to give price cuts to others in the same lot. These may include discounts on insurance, travel, or office supplies. In some cases, these policies can create remarkable reductions in the operating costs of member companies.
Publicity
When a business gets listed in the chamber, it also gets attention in the chamber’s regular publications. This serves as a form of free marketing that can drive business referrals. The subscribers may notice the new business in the publication and reach out for its products or services.
Attending conferences and other chamber events (like fundraisers) is also a great way to connect with other entrepreneurs. Plus, customers may gain a positive perception of the business if it has an active role in the chamber of commerce. They are also 63% more likely to buy from the business in the future.
Educational opportunities
As mentioned above, some chambers have regular publications, like magazines or newsletters. Some even organize events for the chamber members to meet and greet each other. These resources can help all partners learn about new findings, talk about the recent advocacy efforts of other members, and even influence local legislation. This builds a recognizable brand that stays in the learning loop and adapts when time asks for it!
Final thoughts
The entire discussion shows that membership in a chamber of commerce brings a significant amount of perks if one plays all the right cards. Networking, connecting, and consenting to offer concessions are necessary to make the most of these memberships. The publicity that tags along as a result is worth all the efforts. It helps businesses to grow and create a positive change in the entrepreneurial world.
Chambers of commerce are great places to create meaningful connections with influential leaders and young professionals. Solid PR could make a huge difference in business profits and brand perception. Try joining a chamber to find out what your business can benefit!
