For many parents, finding good quality childcare is a major stressor in their lives. Across the southeast, but especially in North Carolina, there is a wide gap between the number parents in need of childcare services and the slots available. Most areas of North Carolina see at least a 50% gap or greater, which has county governments, economic developers, and business leaders taking notice. South Carolina and Virginia fair a little better but also have significant gaps.
“I think people are starting to realize that childcare isn’t just a working-mom issue or a parent issue, it’s an economic development issue,” says Tiffany Henry, director of economic development for Jackson County, NC. “In our area, businesses were already feeling the pressure with their workforce. But when one of the larger providers in the county closed, it really put a strain on the system.”
The lack of quality childcare plays a major role in economic development. For counties where the unemployment rate is relatively low, having more childcare slots available could open up more of the workforce. And as economic developers know, it’s imperative for as much of the workforce as possible to be able to work in order to successfully recruit new businesses to an area. Lack of quality childcare also risks affecting retention, as young people might choose to relocate in order to find employment where childcare is more available.
Two North Carolina counties are working on new models to help close the childcare gap, which will in turn improve workforce initiatives, help with business recruitment and retention, and help improve the well being of families and the communities as a whole.
Jackson County: Existing Building, New Outlook
In western North Carolina, one of the region’s largest childcare providers closed all of their facilities, including three in Jackson County. The lack of childcare had long been a problem, but the sudden closures put everything into the forefront. As director of economic development, Henry took an interest in the issue, but she knew it was a problem facing the entire community. She brought in stakeholders early on to start discussions around childcare, and how to close the gaps.
The group included representatives from:
- Smart Start
- Head Start
- Western Carolina University
- DSS
- Jackson County Schools
- Southwestern Community College
- Other childcare center directors
After doing research, talking with each other, and creating a strategic plan, they approached the county commissioners. The plan included asking the county to purchase the facility that had formerly been the home of one of the Southwestern Child Development Commission centers, doing necessary renovations on the building that had been vacant for two years, and then leasing it out to childcare providers. The county commissioners agreed, and the building will be ready to open in January 2026.
Yadkin County: Partnership Model
Yadkin County faced a similar situation as Jackson County. The Yadkin County Economic Development Partnership saw that a lack of childcare in the area was having a negative impact on the overall workforce and economy. So they reached out to the Shallow Ford Foundation, which conducted an assessment for the county, looking at what was currently happening in the county and how resources could be deployed efficiently to improve the situation.
Using that information, the Yadkin County EDP decided to construct a building and work with Smart Start of Yadkin County to operate and lease the facility. Just as with Jackson County’s project, the Yadkin County EDP saw the importance of engaging partners from the community, and worked with the school superintendent, local business leaders, and elected officials to get buy-in for the plan and create a path forward.
Currently the county is conducting a fundraising campaign to raise more capital for the construction, to add to the amounts pledged by the county and business leaders.
Implementing a Flexible, Incubator-style Model
In both Jackson and Yadkin Counties, an innovative new business model is planned for the two new childcare facilities. “When we were doing the original study, I wanted to look outside of North Carolina to see what was happening around the country,” said Sandi Scanelli, coordinator for the ChildPlex project. Scanelli was the CEO of the Shallow Ford Foundation during the original childcare assessment and became so invested in the issues and finding a solution that she has continued working with Yadkin County EDP on this project.
In researching possible childcare solutions, she connected with Jeff Andrews of the Business of Childcare. He presented a new way of looking at the childcare operating model. Rather than having one operator, and hiring staff for each classroom, his FlexPlex model offers opportunities for each classroom to be run by a licensed operator.
A couple of years after Yadkin County first started researching the options, Henry was doing her own research for Jackson County. Talking with other childcare providers, she learned just how challenging it was to find qualified staff. “I realized if we leased our building to one operator, we wouldn’t be adding new slots, we would just be competing for staff and end up with the same number of slots available in the county,” Henry said. Her research also led to Jeff Andrews and the FlexPlex model. “With this model, we’ll be leasing each classroom to an individual childcare provider, rather than pulling from the limited amount of childcare staff available.”
Scanelli and Henry both tout the many benefits of this model.
- It helps ease the barriers to entry for individuals to become an operator of their own childcare business. Rather than having to license their home or building, they only have to have their individual license.
- Cost of entry is also reduced, as the shared spaces such as the playground are maintained by the property owner rather than the childcare operator.
- As each room is an individual operation, they can set hours to fit their needs or their clients’ needs, offering second shift hours, or after-school care, or other types of flexible scheduling.
- The model can serve as a pathway to entrepreneurship. As the operators in the leased spaces learn more about running a childcare facility, they can eventually set up their own operation in their home or a different location.
- Working with area high schools and community colleges, the childcare facilities can be an opportunity for training and apprenticeships for students interested in the early childcare track.
In looking for new options for providing childcare to working parents, both Henry and Scanelli found an innovative model that will bring a fresh new approach to childcare to North Carolina. Their work shows that it takes more than just a building to provide good quality childcare in a community. It takes working together with local leaders and involving current childcare providers in the discussions and looking for unique solutions to a common problem.
Jackson County and Yadkin County will soon have childcare centers up and running that will be a good model for other counties looking to expand childcare options and boost economic development.