G

Democratic governance and independence from government

G1

Level of member ownership, participation and democratic procedures, control, transparency and accountability

Score  Description

1          Very low: no elections, no general meetings; the president dominates “his / her” chamber; low or no participation of members in chamber committees and internal discussions; chamber is a closed organisation for a local elite

3          Medium: democracy and member participation elements exist

5          Very high: bottom-up democracy; intensive participation of the members in decision making with equal voting rights for all members; limitations to re-election of the board of directors

The more members actively participate in the activities of their business chamber / association, the more impact this generates on the development of member enterprises and the business environment. The chamber becomes more efficient.

G2

Governmental influence on policies, operating, staffing and finances

Score  Description

1          Very high: the chamber is a prolonged arm of the government to control the entrepreneurship; government staff is the board of management

3          Medium: the chamber depends on government subsidies; the government influences staffing; the government stipulates services

5          Very low: the chamber is independent from government in its operation and financially

The more business chambers  / associations depend on government the less they are independent in decision making.

N

Number of SME members

N1

Number of membership fee paying SME members

Score  Description

1          below 100 members

2          101 to 250 members

3          251 to 500 members

4          501 to 1,000 members

5          above 1,000 members

Business associations / chambers with mainly SME members are in general able to professionalize with more than 100 to 200 members, because the more entrepreneurs pay a reasonable membership fee the more likely it is that the chamber is capable to contract enough staff. In addition, the more members a chamber has the more lobby power the chamber gains (“Law of big number”).

N2

Membership fee system

Score  Description

1          All members pay the same amount. This practice favours big enterprises compared to SMEs

3          There are membership fee categories in reference to the size of the enterprises but relatively SMEs pay more membership fee than bigger enterprises

5          A tier membership fee system reflects the economic strength of the members. Per employee, per turnover or per profit unit bigger and smaller enterprises pay the same amount. The relative financial burden through the membership fee is equal for all members.

Only a tier membership fee system keeps the entry barrier for SMEs low and provides the necessary income for the business association/
chamber.

N3

Coverage ratio: ratio of members to non members in the sector / geographical area

Score  Description

1          1% of all potential members are members of the business chamber

2          2 to 5% of all potential members are members of the business chamber

3          6 to 10% of all potential members are members of the business chamber

4          11 to 20% of all potential members are members of the business chamber

5          above 20% of all potential members are members of the business chamber

The more entrepreneurs of a geographical area or sector are organized in a business chamber the more influence it has.