Q: What is the definition of a chamber of commerce?

A: A chamber of commerce is an organization of businesses seeking to further their collective interests, while advancing their community, region, state or nation. Business owners in towns, cities and other territories voluntarily form these local societies/networks to advocate on behalf of the community at large, economic prosperity and business interests. Chambers have existed in the US for more than two centuries, with many having been established before the jurisdictions they represent. A business-led civic and economic advancement entity operating in a specific space may call itself any number of things – board of trade, business council, etc. – but for the purposes of this primer, they are all chambers of commerce.  The chambers in the US and Canada are not bound together under contracts or government regulations. There is no chapter or franchise arrangement between or among them. There can be very strong relationships between neighboring organizations, but those relationships are voluntary and informal rather than required or written. Chambers interact with each other across the nation and the globe – many even maintain formal memberships in other chambers – but the network is informal. In the chamber world, nobody is “in charge” of anybody; a local chamber does not answer to a state or national chamber.

Q: What is the mission of a chamber of commerce?

Q: Who are the local business members?

A: Local businesses are voluntary paying members of a chamber (non-profits, quasi-public and even public sector employers also sometimes pay dues to belong). The membership, acting collectively, elects a board of directors and/or executive council to set policy for, and guide the workings of, the chamber. The board or executive committee then hires a chief executive (various titles), plus an appropriate and affordable number of staff to run the organization.  The geography of any one chamber of commerce – often referred to as “service territory” – is seldom defined by any political or legal jurisdiction. More likely, the territory is defined by the catchment area of a chamber’s membership.

The locations of the businesses that compose the membership tend to define the chamber’s footprint and “claim” to a territory. Adjoining organizations often establish formal or informal understandings about borders. While a chamber’s name (usually trademarked) is usually drawn from its approximate territory  Just within the city limits of Southwest Florida, there are more than 20 chambers of commerce and similar organizations. Even where a county or regional chamber has been incorporated and established over generations, there may be dozens of local and town chambers operating independently within that same turf.

Why are there so many chambers? Historical circumstances, population fluctuations, differing ambitions and the needs of employers have all played a role in the formation of chambers. At the time many chambers were established geographic isolation underscored the need for separate organizations to represent local business and community issues. While developments in infrastructure, transportation and communications over the past century have better linked businesses with their peers in neighboring communities and even foreign countries, the chambers that represent those businesses have remained viable and vital institutions. Without a valid purpose, chamber’s boards, members and funders would have abandoned them long ago.

As suburban and exurban populations blossomed, new chambers sprung up to promote the interests of business in those communities. In some cases, a crisis, like a hurricane, or an opportunity, like attracting a rail connection or promoting an airport expansion, has led to the formation of a chamber that remains viable for decades. New chambers have also been formed out of disagreements or disgruntlement about the direction, position or focus of an existing chamber.  Like other businesses, chambers also dissolve and merge based on economic or other conditions. Both the economic recession and increased focus on regionalism appear to be driving increased examination of the benefits of mergers.

Q: Are chamber of commerce  government agencies? No.

A: In the majority of countries, the use of the term "chamber of commerce" is regulated by statute, though this is not the case in the US. Only trademark, copyright and domain name rules protect a chamber’s identity – only state corporation law defines their existence and reason for being. While most chambers work closely with government, they are not part of government and many consider the process of appropriately influencing elected/appointed officials to be one of their most important functions. Currently, there are about 13,000 chambers registered in the official World chambers Network registry. There are roughly 3,000 chambers of commerce in the US with at least one full-time staff person and thousands more established as strictly volunteer entities.

Q: What is the under volunteer membership model in the United States of America? A: Under the private, volunteer membership model, which exists in the USA and many other nations, companies are not obligated to become chamber members. Membership rolls in a given North American chamber can range from a few dozen firms to more than 20,000, so there is no real “average” or typical chamber of commerce. 

Q: Do  chamber of commerce operate the same as the Better Business Bureau? No.

Chambers do not operate in the same manner as a Better Business Bureau or trade association, which can bind its members under a formal operations doctrine (and, thus, can remove them). Since businesses are not required to join a chamber (penetration levels vary widely), and because territories overlap, it can be difficult for any one organization, regardless of size, to state that it “speaks for business,” but they do. They earn that privilege by attracting numerous and large heterogeneous employers to their membership and leadership, as well as by utilizing their collective voice on meaningful policy initiatives. In general, the smaller the chamber (and community it represents), the less active the organization will be on the policy/advocacy front.

 Even small organizations, however, take stands on regional issues ranging from school funding to road development. The processes of choosing and articulating specific policy positions vary by organization and issue. For the most part, a vote (or expression of consensus) of a chamber board of directors determines the stand to be taken in the name of that chamber on any issue. In recent years, with the increased involvement of public sector and non-profit employers in chambers, consensus-building has become more difficult at all levels. Chamber boards are independent, but they usually take into account the recommendations of state and national organizations when larger issues are considered. The US Chamber and state chambers provide local counterparts with extensive background and adaptable sample documents. Local chambers then debate, adopt, adapt or reject the larger entities’ recommendations. Likewise, local, regional and state chambers express their opinions about legislation specific to them, in hopes that their views will be shared, embraced and supported by others.

The American Chamber of Commerce Executives provides access to a Policy Clearinghouse, which enables member chambers to share knowledge about state and local public policy issues and strategies being employed in various regions to deal with those issues. Because the chamber world is not structured around an affiliate or chapter model, such disagreements cannot be solved by a controlling authority. Sometimes the disagreements cause destructive friction and bonds between chambers are broken. More often, chambers issue differing position statements and agree to disagree, knowing that the opportunity for cooperation on future issues will be critical for them all.

Q: Membership Dues and Model of a chamber of commerce?

Note: It is important to note that in most cases it is the company that is the member, not an individual.  While five, ten or more individuals from a given company will identify themselves as “members” of the chamber, only the organization they work for is counted when a chamber states its size. A company is free to join (pay dues to) multiple chambers and many mid-size to large firms do so (especially neighbors), in order to further advance their companies' market or policy interests.  Dues amounts are typically determined by the size of the member company (employee count or annual revenue), rather than by the number of people engaged in the chamber from that company. Some chambers have adopted pay-as-you-go or funding models based on specific categories or quantity of services provided to member companies.  Occasionally, chambers will “bundle” memberships, allowing a single dues investment in one organization to qualify a company for membership in a group of chambers.

This is sometimes referred to “federation” membership and it can even extend to the national level.

A Businesses and other employers pay dues to belong and expect to receive the benefits of membership as long as they continue to invest in the organization. They usually accept any reputable business as a member, though dues investment schedules can sometimes result in intended or unintended exclusivity. Local chambers are often, but not always, paying members of their state and national chambers of commerce. This connection is one of voluntary membership and does not extend to control or governance. A significant number of chamber executives also choose to join professional associations of their peers, such as the American Chamber of Commerce Executives, the Western Association of Chamber Executives, State Chamber Executive Associations, or the World Chambers Federation. These memberships are for professional development purposes similar to those of any trade association and, once again, the relationships do not involve the abdication of self-determination.