USEFUL FINDINGS

• According to the Ministry of Education in Ontario, there were 5,437 licensed child-care centers in Ontario as of March 31, 2018, with a total number of spaces of 427,032.
• As per the above data, the average number spaces in each of these childcare centers were 427,032/5437 = 78.54 or approximately 79.
• The median daily fees for one full day in these childcare centers were $66 for infants, $53 for toddlers, $47 for preschool, and $41 for kindergarten which averages to $1,552.50 for a month. [($66+$53+$47+$41)/4] = $51.75 for a day and (30X $51.75) = $1,552.50]
• With approximately 79 spaces per center and average monthly earning per space being $1,552.50, the average yearly revenue earned by these centers can be estimated to be $1.47 million. [($1552.50*12*79) = 1,471,770]

• As per the statistics published by the Government of Canada, the annual revenue earned by a small and medium-sized Child Day-Care Service in Canada ranged between $30,000-$5,000,000 in 2017.
• The exact average for the annual revenue earned by a small and medium-sized Child Day-Care Service in Canada, in 2017 was recorded at $153,600.
• The average value for operating expenses incurred by a small and medium-sized Child Day-Care Service in Canada, in 2017 was recorded at $109,000.
• The average net profit recorded by a small and medium-sized Child Day-Care Service in Canada in 2017 was recorded at $33,000 which is ($33,000/$153,600) = 21.48% of the average revenue earned.
• According to a December 2018 report by IBIS World, the daycare market for Canada earned a revenue of $9 billion from 40,881 businesses, implying each business to have earned an average annual revenue of $220,151.17. [($9 billion/ 40,881) = $220,151.17]

• Although the initial capital cost figures were not available specific to Canada or Ontario, the cost estimates for starting a home-based daycare business ranged from $10,000 to $50,000, while Daycare center franchise startups ranged from $59,000 to $3 million.

RESEARCH STRATEGY

STRENGTHS

• As of March 2018, the provincial government provided funding for 85 First Nations to support childcare programs on reserve. According to Ontario's 2018 Childcare annual report, the number of licensed childcare centers has increased by over 15%, while licensed spaces increased by about 73%. Spaces have also increased in number across all age groups.
•  EarlyON Child and Family Centers offer caregivers and infants to six- year old children with free drop-in programs. Their services include activities such as; sing-alongs, storytelling, games, and reading; professional advice in early childhood development; opportunity to interact with other families with young children; and information about other family services.
• Ontario is the first province to sign a framework known as the Canada-Ontario Early Learning and Child Care Agreement. This agreement shows Ontario's efforts to promote affordability, accessibility, quality, inclusion, and flexibility of daycare services.
• Under this framework, the federal government agreed to grant $439 million to Ontario from 2017 to 2020. During this period, $5 million is disbursed annually to finance innovative approaches that promote high-level training and learning opportunities for early years and childcare workers. Also, $40 million is provided annually to improve access to EarlyON Child and Family Centers. On the other hand, $100 is disbursed annually to support access to childcare.
• The ministry of education in Ontario enforces and monitors employee qualification requirement in all the licensed childcare centers. According to the Child Care and Early Years Act 2014, the minimum qualifications for employees and supervisors at licensed childcare centers is that they should be members in good standing of the College of Early Childhood Educators. A director should also approve of them.
• The staff to child ratio is as follows; 3 to 10 for infants, 1 to5 for toddlers, 1 to 8 for preschool, 1 to 13 for kindergarten, 1 to 15 for junior school age. The maximum number of children in the age group is as follows; 10 infants, 15 toddlers, 24 children in preschool, 26 in kindergarten, and 30 junior school age.
• The Canada -Ontario Early Learning and Child Care Agreement supports children who are aged 0-12 years through fee subsidies and reduction of licensed childcare fees. The agreement also supports the children through easy access and increasing affordability. The agreement also promotes not-for-profit childcare centers.
• Ontario supports the inclusion of children with special needs in licensed childcare settings through Special Needs Resourcing funding to First Nations and system managers.
• An increasing number of childcare centers have been offering bilingual programs.

WEAKNESS

• From 2008 to 2018, there has been a decrease in the number of licensed home childcare agencies by about 12%. The number of approved homes has also decreased by about 2%.
• Licensed childcare centers are more expensive for younger children than for older children as the fee per infant is about $66, while school-going children pay about $21.
• The daily fee at licensed childcare centers is higher than the fee charged at-home childcare agencies. For instance, the median fee charged at licensed childcare centers per infant is $66 per day, while home childcare agencies charge averagely $25 per infant daily.
• A small number of licensed childcare centers offer services during non- standard hours.

OPPORTUNITIES

• Ontario is planning to provide free full-day licensed childcare services from 2020. Those eligible are children aged 2.5-5years. This program will save parents about $17,000 per child. According to Ontario Premier Kathleen Wynne, the program will allow more parents to choose to go back to work and also make life more affordable.
• The Ministry of Education in Ontario is proposing a new childcare plan that will support critical areas such as minimizing red tape and burden in administration, delivering of high-quality standard childcare services, and increase accessibility.

THREATS

• In December 2018, the government of Ontario tabled legislation that would seek to increase the number of children cared for by home childcare providers at once. Although the Minister of Education describes this legislation as part of "making life easier for all families," experts argue that the proposed changes are dangerous.
• It is argued that the new legislation on home childcare will hinder the provision of safe, enriching, and responsive childcare services.
• In 2019, the government of Ontario canceled a sum of $50 million that supported care providers to absorb the costs of labor without passing it to parents. This move has, in turn, led to some centers increasing their fees. For instance, the center in Peel Region has raised added $72 per month for full-time care for infants.

St. Stephens Community House

• Created in 1919, St. Stephens Community House is part of the nonprofit institution industry. Five companies are part of it, and its mission is to empower the community while taking care of families. The company provides childcare for children from 6 weeks to 12 years old.

Tropicana Community Services Organization of Scarborough

•  Tropicana was founded in 1980; since then it has offered several services mostly for black and Caribbean children to provide empowerment and cultural significance. It is also composed of five companies, and they offer childcare for children from 3 months to 12 years old.

Mississauga Christian Academy & Daycare

• The academy was founded in 1977 with an objective to prepare children for high school with a Christian perspective. Mississauga Christian Academy has a total of 60 employees in all its locations and offers childcare for children from age 4 to 13 years.

Howie Carl Limited

•  Howie Carl Limited is based in Guelph, ON, Canada; despite being part of the Residential Real Estate Brokerage & Management Industry, it is also a daycare company, that takes care of children from 1.5 years old to 6 years old.

Young Achievers Daycare

•  Young Achievers Daycare is part of a three-company family; its mission is to provide children a sense of belonging as well as teach them values that will influence their future. The daycare provides services to children from 3.8 years to 12 years old.

Educare Kindergarten & Daycare Centre

•  Educare Kindergarten & Daycare Centre has 2 locations, it's licensed by the ministry, and they have been operating for over 30 years. The centre offers childcare services to children from 18 months to 12 years old.

Research Strategy:

ONTARIO CANADA DAYCARE COMPETITORS

• The companies profiled in the attached spreadsheet include St. Stephen’s Community House, which serves approximately 24,000 individuals annually under five categories namely childcare, family services, senior services, youth services, and neighborhood Services.
• Another key competitor is Tropicana Community Services, which offers several programs and services, including life skills development, culturally-appropriate counseling, employment services, education services, daycare services, and social/recreational programming.
• The third competitor, Mississauga Christian Academy, has an annual enrollment rate of approximately 150 students.
• During the 2018-19 fiscal year, Tropicana Daycare Centers served an estimated 141 families and logged a total of 805 hours from students and volunteers.
• Overall, customer sentiments about the three daycare centers are mainly positive. Excerpts from sample testimonials on Facebook, Google, and those published on individual websites are generally positive. Full customer testimonials are included in the attached spreadsheet.

RESEARCH STRATEGY

KEY SUMMARY

• Howie Carl Limited owns and operates a daycare for infants ages 1.5 years old to children 6 years of age.
• Howie Carl Limited also owns retirement apartments and hotels.
• Young Achievers Daycare provides summer camp with field trips, arts and crafts, outdoor time, and guest speakers.
• Young Achievers Daycare also operates an after-school program called "Where Children Grow."
• The after-school programs are situated around many schools in the Catholic District School Board of Eastern Ontario (CDSBEO) and the Ministry of Education approved its program for children 3.8 to 12 years of age.
• Educare Kindergarten and Daycare offers several programs for toddlers, preschool, junior, and senior children.
• The programs Educare Kindergarten and Daycare offers include Kindergarten Class, School Age Classroom. They also offer meals and service during holidays and other special days.

RESEARCH STRATEGY