“Don’t Really Figure Wages . . . Just Pay Bills”: Family Home Child Care Providers as Small Business Owners

Abstract

Using data from the 2021 Iowa Narrow Cost Analysis of child care, the current study examines business practices of family home child care providers. Family home child care providers make up a sizeable portion of the available child care in Iowa; however, their sustainability is threatened by providers making a low income and lacking access to benefits. The current study describes the enrollment of family home child care, cost drivers of providing care, and participation in business practices such as paying oneself a salary, providing for one’s health insurance, accepting state child care subsidy, and participating in the state quality rating system (QRS), as well as relationships among these business practices. Chi-square analyses indicate that providers who accept child care assistance (CCA) are more likely to contribute to their health insurance and provide themselves with paid time off; however, their participation rates in QRS are similar to those who do not accept CCA. Directions for future research and potential points of intervention to support family home childcare (FHCC) providers as small business owners are discussed.