Meaning: Trade Association could be defined as a group of individuals (traders or producers) in the same line of trade, who have voluntarily agreed to come together with a view to promoting and safeguarding the business interest of their members and their trade.
Examples are; Association of Food Vendors in Nigeria, Yam Sellers Association, Manufacturers Association of Nigeria, Taxi Drivers and Cab Operators Association etc. It can also be formed as a Trade Union.
Aims and Objectives of Trade Association:
1. To maintain high quality and standard of their products and services.
2. To promote their trade and create uniformity in their dealings with people.
3. To find solutions to their common problems and speak with one voice to the government in matters affecting their trade.
4. To maintain professional ethics in their business.
5. To assist members, defend them and advance their interests.
6. To protect their members from being cheated by their employers and other members of societyThe term society is derived from the Latin word 'socius' meaning friendship or companionship. Society is a community, nation or group of people who share the same traditions, institutions, rules and... More.
Functions of Trade Association:
1. They promote the welfare of their members.
2. They settle disputes among their members.
3. They educate their members through seminars, lectures, conferences, symposia etc.
4. They organize research work on ways of improving their business operations.
5. They supply relevant technical and other information to their members about the latest innovation in their line of business.
6. They provide credit facilities and assistance to members.
7. They negotiate with other trade associations on a collective basis.
Evaluation Questions:
1. What is trade Association?
2. State the aims of trade Associations.
3. State five functions of trade Associations.
Responses