No matter what business you are in, be it a small retailer, importer, exporter or manufacturer, you will always benefit from the support and services of a trade association. Simply, in all commercial and industrial fields in all countries, you will find regional, national and international trade associations. It is estimated that there are more than 90,000 Associations around the world.

By looking at the numbers you can see their popularity, but what are trade associations and why are they so important?

In this article, you will learn more about associations and their role in the modern business world.

First we will explain what they are:

A trade association is a membership-based organization that is funded by a group of people or companies in a specific industry to facilitate collaboration between companies. They advocate for the interests of their members through advertising, production of industry standards, lobbying, publication of magazines or newsletters, production of exhibitions or conferences, networking, seeking new potential customers or suppliers for the member companies by organizing trips and meetings and, last but not least, education by offering educational materials or courses. Trade associations are governed by laws and are managed by officers who are usually members.

Now let’s talk about the history of Trade Associations and review their evolution throughout history.

The first Society, the Secretorum Academy of Naples he was born in 1560. Over the next century other societies spread throughout Europe in London, Paris, and Italy.

In the 16th century, the first associations in the United Kingdom were born under the name of Guild, to protect the interests of merchants and craftsmen. The well-known Royal Society of London, founded in 1662, is one of the examples. They set rules for wages and working hours and also provided education through skills training. In the 1800s, guilds worked closely with local governments.

The first Association surviving in existence was formed in 1768 by 20 merchants in New York and called it the New York State Chamber of Commerce. Another example is the American Seed Trade Association, which was founded in 1883. After this time, more regional associations sprang up across the country, but most of them were local associations. After the civil war and the great expansion of the country’s industrial capabilities, many local and national associations were formed so that manufacturers could find new markets and expand their businesses. By 1900, nearly 100 national and state associations were active in the United States to ensure their competitiveness in the marketplace.

While Trade Association services were helping companies stay competitive in the marketplace, with increasing demand for products, they soon decided to take advantage of the situation and use it to create monopolies and price fixing. This matter changed with the introduction of antitrust laws and the decision of the US Supreme Court, which ruled on the disclosure of price exchange information.

World War I and World War II dramatically increased the number of Associations and they became a valuable resource in providing industry statistics to the government.

Today, trade associations continue to maintain their essential role as intermediaries between government and business and also help businesses expand by finding new markets while improving product quality by setting standards and educating people.