A trade association (or trade group) is an organization that firms in the same industry form to collect and disseminate trade information, offer legal and technical advice, furnish industry-related training, and provide a platform for collective lobbying. In addition to promoting industry-related issues, trade associations usually provide a variety of other services to their members.

For example, the American Watchmakers-Clockmakers Institute provides members education and certifications, an online store, a career center (with a job board), a library that contains over 3,500 titles about watches and clocks, and other industry-specific professional and business services.

Typically, a paid staff and a volunteer board govern trade associations’ activities. Busy CEOs and entrepreneurs are willing to serve on trade association boards, not only to influence the direction of the associations but because their service provides them visibility and a platform to network with other association members. These types of interactions can lead to businesses forming partnerships and collaborating in other ways as well.

There are 8,000 national trade associations in the United States. The vast majority use websites to list their activities and members.....

Discussion Questions:

1. Pick an industry in which you have an interest. Make a list of the premier trade associations, trade shows, and trade journals associated with that industry.

2. How can an entrepreneur assess whether offering to serve in a leadership capacity in a trade association, on a voluntary basis, will be worth the time and effort?
Establish a set of criteria that you would follow if making this decision.
3. Spend some time looking at the Organic Trade Association (www.ota.com). Make a list of networking opportunities available via membership in this organization.
4. What are the risks involved with networking? For example, are there risks involved with sharing information with industry participants about how your firm competes? How can a company strike the right balance between giving out enough information about itself to attract the attention of potential partners without divulging too much proprietary information?