Biz beat: New group offers networking to small businesses

A dues-free business chamber that is opening chapters in Minnesota, most recently in the south-metro area, has raised some eyebrows among traditional chamber of commerce leaders.

"They are aimed at networking," said Ed Kearney, president of the Apple Valley Chamber of Commerce. "It's a private business, not a [nonprofit] association like us. ... I'm very surprised they have chamber in the name."

The MainStreetChamber South Metro had its grand opening July 21 at Crystal Lake Golf Club in Lakeville. It attracted about 100 people to hear speaker Terry Hitchcock, a marathoner and small-business advocate, said Lisa Saline, chapter president.

The chapter is part of MainStreetChamber Minnesota, which has about 3,000 members in seven chapters opened since October in Mankato, St. Cloud and the Twin Cities, said state director Mike Clough.

MainStreet, formerly known as the National Chamber of Commerce, rebranded itself and has gained about 12,000 members in 156 chapters in most of the states since it opened 13 months ago, said chief executive John Bellave.

He said local chapters hold free networking events aimed at small businesses, which pay no dues and get free advertising on MainStreet's website. Exhibitors cover most event costs, and MainStreet chapters earn income from online and marketing services. Chapter leaders typically operate in home or personal business offices, online and in blogs.

"The key is who is creating the spark," Bellave said. "We create a platform for members to do business with members. It's a free event, so there's no pressure and people focus on building relationships. ... We are making a difference, one community and one chapter at a time."

While traditional chambers serve big and small companies, MainStreet focuses on the latter, which have been neglected during government bailouts of big businesses, Clough said. "A lot of the unemployed start their own business. Somebody needs to help them. We help our members grow their business," he said.

Bellave said Main Street tries to work with chambers of commerce, although "some local chambers feel threatened by our business model."

Clough said he invites traditional chamber leaders to MainStreet meetings and recommends that his members, if they can afford it, join regular chambers, because they lobby for business needs at state and national levels.

MainStreet avoids lobbying and politics because "we want to unite small businesspeople," not alienate them by taking political positions that are bound to offend some, he said.

MainStreet licenses and sells --for $2,000 to $13,000-- startup materials and a website to chapter leaders, who often have personal businesses that they can promote to their members, said Saline, president of the newest south-metro chapter. MainStreet sent her VIP cards for members ($30 a card), which allow them to give and receive discounts on website sales to members.

Kearny said MainStreet neglects the bigger issues like economic development and job growth that regular chambers pursue. He said member dues enable chamber leaders to help members deal with city or state regulations and promote their interests in development and other areas.