Business associations play a big role in the society, and have contributed to the rise of many entrepreneurs across the world. There are different business associations one can join, but the best thing is to find one that matches your entrepreneurial activities. You cannot underestimate the benefits of joining a business association. However, there has been a negative record in some associations which has resulted in a drawback in the associations’ effectiveness.
Here are some of the factors that have led to the ineffectiveness of business association services.
One of the biggest challenges facing business associations is the lack of good management. As a matter of fact, this issue has continued to affect numerous associations imposing a huge negative business impact. For instance, when picking the executive leaders of the associations, most people fail to check their suitability and qualifications. As a result, the selection of unqualified leaders impacts negatively on the expansion of business associations. To overcome this challenge, leaders should be chosen depending on their experience and capabilities.
Conflict of Interest and Low Membership
The business world is facing a huge challenge resulting from self-interest by the key operators of business associations. Corruption and embezzlement of funds is the main killer of many associations. Inappropriate use of associations’ funds has rendered most organisations bankrupt, weakening the financial muscle required to run their activities smoothly. Besides, most people want to do everything they can to benefit themselves instead of concentrating the same efforts to improve the efficiency of the associations.
Additionally, low membership has also contributed to the ineffectiveness of many business associations. With low numbers, only a few activities can be covered due to limited contributions. Thus, business associations need to stand firm in the fight against corruption and conflicts of interest. Sanctions should be imposed on leaders and members who exhibit unethical conduct. They also need to find new approaches of attracting new members.