Family Child Care Business is Microenterprise?

What defines a microenterprise you ask?  Well, it is a business with:

  • five or fewer employees;
  • $35,000 or less required to start the business;
  • most are owned and run by one person, a sole proprietorship; and
  • sometimes they grow into something bigger and employ family members or even bigger

The Child Care Bureau put together a guide to "raise awareness of and provide resources for the child care community and microenterprise development field about small business and asset-building opportunities for child care providers and aspiring or existing business owners" (National Child Care Information and Technical Assistance)

The guide mentions Mirco-loans and IDAs as options for funding.

Who is a Micro-loan for?

It is a loan that:

  • is less than $25,000;
  • for people who start their own business;
  • usually cannot access traditional forms of financing; and
  • high risk business start-ups and low income individuals.

Who offers these loans?

microenterprise development programs; and
financial institutions

What is a Microenterprise program?

Typically a program run by not-for-profit organizations that provide different services to the microenterprise business whether it be trainings, support or micro-loans.  Examples of these organizations are: community action agencies, women's business centers, and social service organizations.  The guide provides more examples.

Microenterprise Directory:

What is an IDA?
Individual Development Account (IDA) an opportunity for low income individuals to save money with a matching program. 

Who offers the IDA?
Not-for-profits, community organizations and local governments. 

Income, Earnings, Net Worth, and Credit History

For details regarding the above, visit the guide on NCCIC's website  It has additional online business resources for you to check out.

Adapted From

National Child Care Information and Technical Assistance. (n.d.). Child Care as a Business (Microenterprise) Resource Guide for Child Care Providers/Business Owners. Retrieved October 2010, from National Child Care Information and Technical Assistance Center:


Samantha Marshall, M.A.

Samantha is, just like you, excited to make a difference in our community and our world. With a Master of Arts degree in English Literature, you might ask how she found herself building and writing for a website focused on child care. From 1995 through 2001, Samantha started her career working for Child and Adult Care Food Program (CACFP) sponsors which introduced her to the importance of non-profits, community and quality child care. Her experience with Sponsors, State Officials, and Family Child Care Providers left a great and lasting impression. Later in her career and her most recent position at SAGE Publications, an academic publisher, was as a product manager for a new online resource! During this time many of Samantha's passions collided. A love for the written word, children and the proliferation of knowledge as well as a fascination with the resources the internet gives us, building a community for child care on is the perfect way to make the difference she wanted to. Needless to say, she is very excited to be an active part of creating and building