What Is a Business or Trade Association?

Business or trade associations are common in many communities around the world, and may include local members only or encompass members from all over the world. The functions of business and trade associations vary, although those functions normally serve to help maintain quality and promote communication within the industry in which all the members participate.

• Raising public awareness is often part of the agenda of a business or trade association.  Using marketing strategies that include media ads and involvement in public events, the association helps to educate the general public about the industry and the goods and services offered, effectively paving the way for companies within the industry to reach interested consumers.


• Promoting standards and quality throughout the industry is also the mission of many of these types of associations. By requiring members to comply with any governmental regulations and standards that may apply to the industry and also promoting ethical practices among the membership, the association can help to strengthen the industry overall as well as enhance its reputation.


• Lobbying for regulations that support the work of a given industry is also often part of the reason for forming a business or trade association. The collective influence and resources of the member companies make it easier to inform lawmakers of how various types of legislation could hinder the work of the industry and in turn create issues in the communities where the businesses operate. 


• Networking is another function of a business or trade association.  Depending on the range of companies allowed into the organization, membership provides an opportunity to share concerns and information that is useful for everyone concerned, as well as worth together on issues of common concern. Along the way, alliances may be forged that ultimately strengthen the industry in ways that no single company could manage on its own.