what is business to government b2g 
business to government b2g is the sale and marketing of goods and services to federal state or local agencies in modern lingo there are three basic business models business to consumer b2c business to business b2b and business to government b2g b2g is not an insignificant chunk of business by the end of may 2024 the federal government had spent over 3 8 trillion in the fiscal year to date 1 notably a portion of its business is supposed to be spent on small business suppliers understanding business to government b2g b2b business can be as modest as a small business providing it support services to a town government it can be as big as boeing which builds helicopters missile defense systems fighter jets and surveillance aircraft among many other products for the u s department of defense dod 2at the federal level the general services administration gsa is the government s official buying arm developing and implementing regulations on a vast array of products and services purchased for the u s government 3governments generally solicit services from the private sector through requests for proposal rfps the gsa website gsaadvantage gov is a shopping portal for government agencies and gives an idea of the sheer breadth of products purchased by the federal government 4not surprisingly given the enormous numbers and range of federal state and local purchasing requirements an entire sector of the internet is devoted to matching businesses to government agencies advantages and disadvantages of business to government b2g businesses that are used to interacting with other businesses or directly with consumers often encounter unexpected hurdles when working with government agencies governments tend to take more time than private companies to approve and to begin work on a given project layers of regulation can drag on the overall efficiency of the contracting process while businesses may find that government contracts involve additional paperwork time and vetting there are advantages to providing goods and services to the public sector government contracts are often large and more stable than analogous private sector work a company with a history of successful government contracting usually finds it easier to get the next contract special considerationsfederal requirements often specify that certain amounts of appropriated funds must be spent on contracts with small businesses this potentially can give smaller businesses an advantage in b2g activity or at least offset some of the advantages that large well established government contractors may already enjoy the small business administration sba offers an online guide to help small businesses win federal contracts 5in order to qualify as a small business contractor a business must be properly registered as such demonstrating that it is independently owned and operated and makes a significant contribution to the u s economy among other requirements 6in addition to small businesses federal laws and regulations often mandate certain amounts of spending be directed toward groups such as veterans women and racial or ethnic minorities small businesses owned by members of these groups may enjoy special advantages in obtaining b2g contracts 7