Most early care and education (ECE) programs are delivered by the private sector, approximately 85%; in nonprofit, faith-based, and for-profit centers as well as thousands of home-based businesses. Unlike our K-12 and higher education systems, which have their own infrastructure, ECE cannot be described as a system. The lack of coordination and a unifying infrastructure in the sector results in fragmented services that are difficult for parents to navigate.
Most ECE organizations function on very weak business platforms with cumbersome and blended funding streams, resulting in few economies of scale. The ECE sector is comprised primarily of businesses with fewer than 20 employees. This results in a fragile industry where tuition is often the sole source of revenue for ECE businesses and prices frequently fail to cover costs. Third-party funding is scarce and requires unwieldy accounting and reporting. ECE directors are rarely trained as accountants or business managers; they are experts in child development, focused on the intimate work of educating and nurturing children.
Low profitability and weak business platforms have an impact on ECE quality. Of the over 3,500 licensed ECE programs in Colorado the majority do not meet desired quality standards. Poor to mediocre programs do not help children get ready for school. This quality gap presents an additional challenge for parents, who are the majority funders for ECE: high quality ECE is costly and therefore unaffordable to most parents.