Topic summary

Business-to-government

Business-to-government

Trade between the business sector as a supplier and a government body as a customer Business-to-government (B2G), also referred to as business-to-public-administration (B2PA) or business-to-public-sector (B2PS), describes commercial transactions in which businesses supply goods or services to government entities acting as customers. Where governments contract directly with each other, the term government-to-government (G2G) is also used. The concept is closely related to public procurement and may also include marketing activities directed toward government institutions at the local, regional, or national level through public relations, branding, advertising, and digital communications. B2G is commonly discussed alongside business-to-consumer (B2C) and business-to-business (B2B) markets as one of the principal commercial interaction models. It integrates elements of business administration, public administration, marketing, communications, and political science to facilitate exchange between private-sector suppliers and public-sector organizations. The B2G domain is relevant: the public sector represents 54% of EU GDP, and 47% of US GDP. Public sector procurement amounts to 14-20%