Business-to-government, refers to trade between the business sector as a supplier and a government body as a customer. B2G is the sale and marketing of goods and services to State Owned Enterprises, International Government Organizations, National Government Oranizations, City Councils, Island Councils and other public sector agencies.
Any business entity can sell to the government. These companies supply the machinery, equipment, information systems and other products and services that governments and agencies need to operate.
Most contracts are granted in response to a request for proposal (RFP) from an agency. Businesses bid for contracts by submitting responses to RFPs. It comprises all types of contracts covering goods, services, and data between all business sizes and all government levels including state, local, and federal.
The B2G business model is a variant of the B2B model that involves transactions between the selling business and the purchasing governmental entity.