01.08.24
A New Perspective On Childcare
Leslee Hill, Director of Woman's Business Center at NIIC
This article first appeared in the Journal-Gazette on December 16, 2023
In the heart of Indiana, the often-overlooked heroes of childcare are grappling with challenges that hinder their ability to thrive as business owners. In-home childcare providers, a crucial but undervalued sector of the childcare landscape, face a myriad of obstacles that not only affect their financial success but also limit their capacity to serve low-wage earning families. It’s time to shed light on the complexities these providers face and explore avenues for empowerment that could transform the childcare landscape in Indiana.
One significant hurdle is the pervasive reluctance among in-home childcare providers to see themselves as business owners. This mindset, while commonly rooted in a genuine passion for childcare, hinders providers from ensuring they are fully compensated for their services and routinely paid on time. The result is a lack of financial stability that extends beyond the provider and impacts their ability to hire additional staff. Recognizing and empowering in-home providers as entrepreneurs is the first step toward building a sustainable childcare ecosystem.
In-home childcare providers offer a lifeline to families requiring flexible hours, particularly those working second and third shifts. Per the Child Care Business Affairs 2021 Final Report conducted by the Bipartisan Policy Center, many of these families are low-wage earners, often including Hispanic and Black parents. The unique support that in-home providers offer not only extends to the children under their care but also helps them navigate the delicate balance of running their own households. The critical role played by these providers in supporting vulnerable communities underscores the need for targeted support to ensure their success.
For many in-home providers, the prospect of purchasing a home to operate childcare services represents a path towards financial empowerment. Owning a property not only provides stability but also serves as an avenue for wealth accumulation. However, various government regulations act as roadblocks, making it difficult for these providers to accept childcare vouchers/subsidies, a lifeline for many low-income families. Per the Interpretive Guide for Child Care Home Rules through the state of Indiana state, it is more difficult to accept childcare vouchers as an unlicensed, in-home child care provider, due to increased governmental red tape. It is also more difficult to purchase a home loan with less-than-ideal credit scores, which is typically the case in low-income neighborhoods where childcare is already scarce. Therefore, streamlining these processes is essential to creating an environment where in-home providers can maximize their impact on their communities while also building personal wealth.
Square footage regulations further compound the challenges faced by in-home providers. Considering that most parents prefer childcare close to their daily routines and that vulnerable communities often require more accessible child care options, the square footage of homes becomes a significant factor contributing to childcare deserts.
According to rule 4.7 of child welfare services, each childcare room/area must provide a minimum of 35 sq ft of usable indoor play per child. Given that unlicensed childcare homes are limited to serving six or fewer children, one room in a provider’s home must be at least 15ft x 14ft. Many homes in vulnerable communities do not offer a room of this size. Reassessing these restrictions is crucial to ensuring that in-home providers can thrive financially while offering convenient options for families.
To address these challenges, it is imperative that Indiana reevaluates its approach to in-home childcare regulations and support systems. By recognizing and empowering in-home childcare providers as entrepreneurs and encouraging them to do the same, facilitating home ownership, easing childcare subsidies/voucher acceptance processes, and revisiting space regulations, the state can take significant strides towards building more robust, accessible, and financially sustainable childcare sector. The time has come to break down the barriers that hinder the success of these business owners and, in doing so, uplift the families and communities they serve.
