Business services, also called business-to-business (B2B) or B2G service, are a type of economic service that takes place between trade organizations. They stand in contrast to business-to-consumer and business-to-government transactions.
Typically, these services help businesses achieve their goals for the business by helping them operate, reduce costs, or generate more output. They can be either paid for directly or indirectly through taxes and charitable contributions.
B2B business services are an essential part of the economy. They are critical to the growth of businesses and help them compete.
The European Union’s business services industry is one of the largest in the world, and it represents 11% of EU GDP. It is highly diverse, including technical services such as engineering and architecture, but also professional services such as legal and employment services.
These industries face significant untapped growth potential in the EU, as they continue to struggle with low productivity and persisting legal barriers. The European Union’s Internal Market legislation and policy actions aim at addressing these challenges and stimulating the sector’s competitiveness in Europe.
Business services share characteristics with other service sectors, such as logistics and transportation, that help create value through new combinations of goods and services. They are important to Europe’s industrial base, particularly in manufacturing.
There are four key elements to craft a profitable service business:
Customer Involvement, Employee Collaboration, Information Technology, and Strategic Management. The business’s success depends on the interconnection of these elements – it’s not enough to simply have good employees.