Examples of B2G
Most small businesses operate as business-to-consumer, or B2C. Some businesses work to supply equipment and services to other businesses. These are business-to-business, or B2B, companies. More companies are now working with government agencies as business-to-government, or B2G, entities. Federal, state and local government bureaus often rely on private-sector suppliers for vital services. For example, B2G companies can provide web-based applications and databases designed specifically for government offices.
A prime example of a federal agency that employs B2G companies is the U.S. General Services Administration, or GSA. The GSA Advantage website provides federal offices with a web-based portal they can use to get the goods and services they need to accomplish their tasks. The site organizes products and services into more than 20 categories, ranging from construction supplies to technology solutions to automobiles and boats. Small businesses can learn about what government agencies require, their pricing expectations and how to become a supplier.
The Federal Housing Administration, or FHA, a division of the U.S. Department of Housing and Urban Development, developed the FHA Connection B2G system. Mortgage brokers can link their loan origination system to FHA data on home loans that are underwritten by the agency. The system offers mortgage lenders a more efficient process for obtaining information on FHA home loans by eliminating duplicate entries, standardizing tag names and easing the tasks of organizing and retrieving data.
Companies that specialize in construction and infrastructure repair often rely on contracts with state and local government agencies. These agencies consult with contractors on construction projects for new office buildings, parkland development and road construction. Agencies release requests for proposals, or RFPs, detailing the work they require and the process for submitting proposals on these projects. Business owners submit bids that include cost estimates and timelines. While the company with the lowest bid frequently gets approval for the project, a bid that emphasizes quality and experience can also win the job.
From tax forms to criminal records, government agencies handle terabytes of data every day. These offices require sophisticated data access and retrieval systems. Small businesses that specialize in information technology can find new opportunities by offering consulting and software development services to government agencies. For instance, a database development firm can create a system for tax offices that allows businesses to find the necessary tax forms for investment income, equipment depreciation and real estate purchases.