By Jennifer Burns

As such, there is a positive relationship between the quality and cost of child care services delivered and the rate of employment among single mothers. The typical solution to the problem until the recent was the welfare reform. Historically, a welfare reform targeted child care services as a barrier to employment. Until the welfare reform was put into action, subsidies for child care have been available to population through the Child Care Development Block Grant and federal Title IV-A funding sources. Fund received through the programs were often followed by the requirements put by the states in which the funding was given. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) consolidated the funding programs into block grants allowing the states to construct own child care schemes. The decision has been pushed forward by the different needs of population for child care services throughout the states. As states now can supplement federal child care grants with the federal budget, the state match that has previously been required is no longer applicable. Recent evidence after the reform suggests that even though governmental expenditures on child care subsidies has increased, the increase would have been greater if the state matching requirements have not been cancelled. Going even further then this, only a few are receiving the subsidies: 10 million of children are eligible for the governmental support, whereas only 1.24 million are currently receiving it.

In accordance with guidelines outlined in PRWORA, families with up to 85 per cent of the median income can be eligible for federal support in child care services. Even though the number of families that fall under the stated criterion is relatively small, only 5 states as that of July 1999, set the eligibility guidelines in accordance with the federal maximum. Aside from this, participation in the programs is relatively low due to lack of information about the opening opportunities. In such way, the current governmental policy towards child care funding is inefficient, as it is unable to cover all families in accordance with the guidelines set, whereas the number of women that are willing to be employed is increasing.

Jennifer Burns is a professional freelance academic writer at Custom-Writing.org, custom writing service. Jennifer specializes in report writing and critique writing.

Tags: Child Care Services, Labor Market Costs

By Greg Miles

In order for you to be successful you need to assess the need for child care services, prepare your business plan and assess you financial position.

1. STARTING A CHILD CARE BUSINESS - ASSESSING THE NEED FOR CHILD CARE SERVICES IN YOUR COMMUNITY.

The easiest and fastest way to do this is to speak to parents. You can arrange an interview with several families or your can conduct mail and telephone surveys. The information you get will help you decide on what type of service to offer:

a) Family Care is a program that is designed to provide care for toddlers in the homes of other mothers.

b) Home Care is where a nanny or a baby sitter provides care and supervises children in their home.

c) Daycare and child development centers provide programs that are more concerned with the social, physical, emotional, and intellectual development of infants and children.

d) Infant care centers provide care for infants and toddlers, usually two years or under.

e) Before and after school care - programs designed for school age children.

2. STARTING A CHILD CARE BUSINESS - ASSESSING YOUR REASONS AND MOTIVATION

It is important that you assess your reasons and motivations for starting a child care business.

a) Why do you want to start a child care business?

b) How much experience do you have? Have you ever started and managed a business before?

c) What Skills do you have? (Organisational, record-keeping, supervisory, teaching, ability to handle emergencies, business experience, working with children, etc.)

d) Is your physical health excellent, good or poor?

e) Are you prepared to work long hours?

3. STARTING A CHILD CARE BUSINESS - PREPARING FOR BUSINESS

Preparing to open your child care business is an important step. Here are some things you may need to do:

a) Choose a name and legal structure (Sole proprietor, partnership, etc.?) for your child care business

b) Apply for a License or Registration. Most states require that child care centers be licensed.

c) Find a location or decide where youre going to operate from. Many child care providers operate from their homes but you may want to buy, lease or rent facilities for your daycare center.

4. STARTING A CHILD CARE BUSINESS - FINANCING YOUR BUSINESS

There are many sources where you can go to get financing for your child care center. But the funding you can have access to will depend on whether youre starting a non-profit or a for-profit center.

a) Private sources such as your own savings and loans or gifts from friends and family.

b) Loans from commercial Banks

c) Government Agencies such as federal state and local government offer special assistance to small businesses. For more information contact your local Small Business Administration office (SBA) or your state economic development office,

d) Grant programs are usually funded by private foundations, federal or state government agencies. Many for-profit businesses do not qualify for grants.

e) Other sources include credit unions and insurance companies.

5. STARTING A CHILD CARE BUSINESS - YOUR BUSINESS PLAN

There are many excellent books available about writing business plans. Its a good idea to buy a book about starting a child care business as these books usually include samples of business plans that you can adapt to your needs and use.

Copyright © 2007 Greg Miles. Click here to get a complete business package to help you easily and quickly start your own profitable day care business: http://www.businesstartupsguide.com/daycare/ or visit The Business Start-up Guide online.

Tags: Child Care Business, Child Care Services