Day Care - Business

Business

The day care industry is a continuum from personal parental care to large, regulated institutions.

The vast majority of childcare is still performed by the parents, in house nanny or through informal arrangements with relatives, neighbors or friends. For example, in Canada, among two parent families with at least one working parent, 62% of parents handle the childcare themselves, 32% have other in-home care (nannies, relatives, neighbours or friends) and only 6.5% use a formal day care center.

However for-profit day care corporations often exist where the market is sufficiently large or there are government subsidies. For instance, in North America, KinderCare Learning Centers, one of the largest of such companies, has approximately 1,600 centers located in 39 states and the District of Columbia. Bright Horizons Family Solutions another of the largest has over 600 daycare centers. Similarly the Australian government's childcare subsidy has allowed the creation of a large private-sector industry in that country. ABC Learning Centres is a publicly traded company running about 1,000 daycare centres in Australia and New Zealand and another 500 in the USA.

Another factor favoring large corporate day cares is the existence of childcare facilities in the workplace. Large corporations will not handle this employee benefit directly themselves and will seek out large corporate providers to manage their corporate daycares. Most smaller, for-profit day cares operate out of a single location.

In general, the geographic limitations and the diversity in type of daycare providers make child daycare a highly fragmented industry. The largest providers own only a very small share of the market. This leads to frustration for parents who are attempting to find quality child daycare, with 87% of them describing the traditional search for child daycare as "difficult and frustrating".