For the first time, the concept of chamber of commerce was introduced in France 1599. Business association is membership organizations established to represent and serve the business community. They are generally made up of enterprises and individuals engaged in trade, industry, and businesses whose members share common interest. Modern forms of business associations and chambers of commerce began in France in the early 1800’s subsequent to medieval Europe merchant guilds administered by merchants seeking to protect/regulate their trades. In the same manner as modern business associations, the guild’s pre-occupation included such activities as supervising weights and measures; running arbitration boards for disputes, administering ports and markets; gathering aggregating, and presenting business views to the community; organizing commodity exchanges; and collecting and providing information on commerce and trade (Davis, 1999).Adama Chamber of Commerce is one of the oldest and strongest nonprofit and non-governmental organizations in Ethiopia particularly in Oromia regional state which has been established in April 1965 next to Addis Ababa Chamber of Commerce and sectoral Associations. It is a strong chamber and flourishing private sector and business associations, however, suddenly suffered serious blow following the eruption of the 1974 revolution. The “Dergue,” toppled the Emperor and proclaimed Socialism as its official economic policy and ideological orientation. As a result, private land, private manufacturing industries, mechanized farms and service rendering institutions were nationalized and emerging private businesses discouraged. In line with its ideology, it felt the need to issue a new proclamation to establish chambers of commerce, which would operate under the guidance of “the National Democratic Revolution Program.” The Dergue, thus, issued the Chamber of Commerce Proclamation No. 148/1978 which  heralded for the first time, the legal establishment of a national chamber, the Ethiopian Chamber of Commerce and other “Urban Centre Chambers” to be established in consultation with the Minister of Commerce and Tourism. The Ethiopian Chamber consisted of “the council whose members are presidents of Chambers and a representative of the Minister.” The Proclamation introduced mandatory membership and imposed the obligatory representation of virtually each public commercial, agricultural, industrial, financial institutions as well as cooperative societies and peasant associations. During this period, the relative independence chambers enjoyed during the imperial era was abolished as the chambers become a wing of the government and the small private sector was practically undermined. Following the downfall of the Dergue regime in 1991, a new market oriented economic policy was adopted by the Transitional Government of Ethiopia (TGE). However, Proclamation No. 148/1978 continued to be in force even though most of the rules contradicted the policies and laws of the TGE and later, the Constitution of the Federal Democratic Republic of Ethiopia. With the adoption of the Transitional Government charter and later the constitution, the right to freedom of association was recognized and businesses of various sectors or sub-sectors quickly got organized at national and local level. Although late, the Government issued the Chamber of Commerce and Sectoral Associations Establishment Proclamation No.341/2003 which reconstituted the chambers of commerce and sectoral associations in line with the free market policy of the government and the federal structure adopted by the country. Consistent with article 31 of the Ethiopian Constitution that ensures freedom of association, the Proclamation introduced voluntary membership. It also included the establishment of sectoral associations and their chambers. Ethiopia has followed a similar pattern. The Ethiopian Chamber of commerce was established 1934 G.C in Addis Ababa. It dates back to the commodity crisis in 1941/42 immediately after the liberation of Ethiopia from the Italian occupation. At this time there was a shortage of essential goods such as cotton, salt and other items and there was a need to distribute these items to the public through rationing.With the recovery of the economy, there was no need to ration the scarce items and the membership of the association declined sharply. However, the Government, cognizant of the achievements of the association, issued the imperial charter for the establishment of the Addis Ababa Chamber of Commerce (AACC) that was published in the NegaritGazeta as General Notice Number 90/1947 in April 1947. Thus, the Imperial Charter, the twelve city chamber of commerce was established under the umbrella of ECCSA in 1978 under proclamation No. 148/1978 Addis Ababa Chamber of Commerce, Assela, Hawassa,Bahir Dar, Dessie, DireDawa, Gonder,Jimma, Mekelle. Adama, Nekemte and Shashemene which represented there members.Although the Charter provided the basis for the legal establishment of regional city chambers.Adama Chamber of commerce and sectoral associations has currently more than 26000 voluntaryregistered members. Since its establishment, it has served its members in promotes trade and industry, safeguard the right and benefit of business community, enhance members on economic development, trade and investment, serve as a bridge between business community and government, establishing friendly relationship with similar chambers in other countries, and exchanging information as well as engaging in arbitration in times of disputes among members. It also led by 11 a board of directors constituted from traders having business license, and 41 of highly trained & dedicated staff.