Roles of Chambers & Associations 20 September 2016 Hargeisa City - Maansoor Hotel By: Hailemelekot Asfaw

Outline Purpose and Roles of Business Associations Future Trends of Business Associations Challenges of Business Associations How Business Associations Provide Value Added Services The Roles of Business Associations in Public Policy Advocacy

I. Purpose and Roles of Business Associations + GOVERNMENT STAKEHOLDERS 3

Strong business associations… Harness the capacity of private businesses Create business opportunities Protect the interests of both companies and employees. Promote civil society Enhance the business climate Combat corruption Provide a social “good” to society

II. Future Trends of Business Associations “Humans can never change the way they act until they change the way they think” - Mark McCord

Future Trends Using technology to build visibility and grassroots support Embracing strategic planning as a value added process Changing the membership development paradigm Establishing transparent financial systems Improving organizational and corporate governance

Future Trends Embracing public policy advocacy in support of member demand Becoming a broker of information Embracing community development as a core value Becoming a driving force in educational and workforce initiatives Engaging in public-private-partnership (PPP)

Future Trends Celebrating diversity as a way to foster social and political change Focusing on marketing strategies to reinforce organizational purpose and message Adopting a team-oriented management style Focusing on economic development as an economic building block Employing and empowering professional staff members Involving the business community

III. Challenges of Business Associations Lack of trust Lack of Communication Inability to adjust Lack of legal Lack of BA mentality Lack of….

Lack of a business association mentality Lack of trust Lack of communication between organizations and their members Inability to adjust to a management style that is conducive to peak organizational effectiveness (due to lack of effective internal communication) Lack of a legal infrastructure or the adherence to an archaic law(s) that governed organizational development.

IV. How business associations provide value added services? The Five Way Test: 1. Is the program consistent with the organization’s mission? 2. Is the activity demand-driven? 3. Does the association have the technical and staffing capacity to sustain the program or service? 4. Will the program achieve desired outcomes? 5. Does the program duplicate the efforts of other organizations?

Examples of value added services Fee for Services - Under a fee for services program, an association member pays a small membership fee (dues) and then pays an additional amount of the services he/she uses (e.g. business info, certification) Publications - Membership Directory, Newsletter, Tourism Publications, Trade/Investment Publications, Guide for Entrepreneurs, etc. Network Meetings-Revenue generator to bring together buyers and sellers

International Trade/Investment - Global Investment Forum, Trade Missions , Trade Exhibitions, Virtual Trade Mission Technology - Website Development, Web- Based Advertising, Electronic Newsletter/Magazine

Consulting Services - Business Development Consulting, Entrepreneurial Assistance, Labor Negotiation, Arbitration Services, Quality Standards, Management Audits, Legal Services, Market Research

V. The Roles of Business Associations in Public Policy Advocacy Dialogue is KEY !

1. To make the voice of businesses heard Media Lawmakers Regulators, bureaucrats and administrators General public including business association members Policy Advocacy is the most important function of a Business Association!

2. To strengthen business associations Articulate members’ concerns in a unified voice Meet regularly with decision-makers Establish regular channels of communication and close working relationships with government officials (e.g. PPD platform) Use these channels to promote members’ interests Engage in both proactive and reactive advocacy for their members’ benefit Help prevent frequent changes to the business- related legal and regulatory frameworks

Thank You!