4 Ways Cities Can Provide Business and Financial Supports to the Early Childhood Workforce

The early childhood workforce is a vital aspect of the economy through its role of providing childcare. Often overlooked, however, is the equally vital entrepreneurial side of running a childcare business. This dynamic workforce faces the daunting challenge of running small businesses while often lacking access to resources for professional development and business support. To truly harness the potential within this sector, cities must implement policies and practices to create a system that supports the early childhood workforce and recognizes them as small businesses.

By investing in early childhood care, city governments also enhance the overall economic health of their communities, as a well-supported child care sector contributes to workforce participation and long-term economic growth. To effectively do this, cities must mobilize across departments, recognizing that robust programs and services for the early childhood workforce demand the commitment and resources of more than just one sector.

4 Ways Cities Can Supports the Early Childhood Workforce

1. Streamline Licensing and Certification Processes

Licensing and certification play a pivotal role in ensuring the quality and safety of early childhood education. It ensures that the workforce adheres to specific guidelines regarding health, safety and curriculum, fostering an environment conducive to children’s growth and development. Licensing in many cases also opens the door for childcare centers and informal childcare homes to receive additional funding. City governments can offer support to the early childhood workforce by providing resources for training, streamlining the certification process and advocating for policies that prioritize the well-being of both the early childhood workforce and the children they serve. These certifications not only validate and acknowledge the workforce’s expertise but also assure parents that their children are in capable hands while they return to work.

The City of Santa Fe, New Mexico partners with Growing Up New Mexico to support Escalones, a program that incentivizes family and home-based childcare business owners to grow their businesses through cash rewards.

2. Provide Financial Literacy Training

Offering financial literacy training is invaluable for the early childhood workforce as it equips them with essential skills to effectively manage and grow their businesses. Continuous professional development in areas like financial management, marketing strategies and proposal/grant writing enhances business acumen and operational efficiency. Workshops and seminars focused on these topics not only empower business owners to make informed decisions regarding budgeting, investments and pricing but also enable them to attract more clients through effective marketing techniques. By investing in ongoing training initiatives that are offered on weekends and weeknights to account for the schedule of the workforce, city governments can support the sustainability and success of early childhood businesses, ultimately benefiting both the early childhood workforce and the children under their care.

The City of Columbia, Missouri is working with Missouri Women’s Business Center to provide training and coaching to the early childhood workforce. They have recently formed a cohort and are offering monthly trainings, including grant writing, tax preparation business accounting and basic Quickbooks knowledge. All participants qualify for free one-on-one business coaching and various business classes/workshops.

3. Provide Financial Assistance for Childcare Businesses

Cities can support initiatives aimed at promoting economic development within the early childhood sector by providing financial assistance and ensuring the sustainability of childcare businesses. By increasing funding, local governments enhance workforce stability, improve care quality and make childcare more accessible and affordable for families. This can be achieved through grants, subsidies and tax incentives specifically designed to alleviate the economic pressures on the early childhood workforce. Such financial support enables these businesses to maintain high-quality services, invest in staff training and improve facilities, ultimately benefiting  the entire community..

The City and Borough of Juneau, Alaska collaborated with Southeast Alaska Association for the Education of Young Children to improve the capacity and quality of childcare services in Juneau. They secured approval and budget allocation to directly subsidize the ongoing operational costs of local childcare businesses, enabling them to pay higher, more competitive wages.

4. Adapt Zoning Laws

Adapting zoning laws is crucial for increasing the number of childcare facilities in cities. Zoning regulations can significantly impact the establishment and operation of these facilities by dictating where they can be located, the type of buildings they can occupy and the necessary safety and space requirements. By revising zoning laws to be more inclusive and flexible, cities can facilitate the opening of new childcare centers, especially in underserved areas. This can involve allowing childcare facilities in residential zones, reducing bureaucratic hurdles and providing clear guidelines for compliance. Such adaptations not only expand access to childcare but also support the workforce and families, fostering a more child-friendly urban environment.

Building on earlier efforts to expand access to high-quality child care options throughout the city, Mayor Wu of Boston, Massachusetts signed an Executive Order on Inclusion of Daycare Facilities that makes zoning requirements more transparent and predictable, providing a stable funding source for the city’s Office of Early Childhood to expand high-quality child care programs.

Learn More About the Early Childhood Workforce

Explore how cities professionalize and support the early childhood workforce through early learning policies and initiatives, and the key challenges you may face in supporting the early childhood workforce at the local level.

About the Author

Annika List

About the Author

Annika List is the Senior Specialist, Early Childhood Success, Center for Leadership, Education, Advancement & Development at the National League of Cities.