The parallels between Canadian childcare operators and small-scale housing providers

Author
Weiting Bollu
| Published at
November 6, 2024
| Updated on
November 6, 2024
Author
Weiting Bollu
Published at
November 6, 2024
Updated on
November 6, 2024
What do Canadian childcare operators and small-scale housing providers have in common?

KEY TAKEAWAYS

  • The $10/day Canada-Wide Early Learning and Child Care (CWELCC) program aims to make childcare more affordable but puts financial pressure on small, often women-led, childcare businesses.
  • Government policies designed to control costs and increase oversight can lead to unintended consequences, similar to those faced by small-scale housing providers, such as long waitlists and financial unsustainability.
  • Effective government leadership and thoughtful implementation are crucial for programs impacting childcare and housing to avoid backlogs and inefficiencies that hurt end-users.

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In October’s newsletter, I ask this question:

“What do Canadian childcare operators and small-scale housing providers have in common?”

Are any of you caregivers to young children in Canada? I have two boys under two!

I didn't think childcare operators would have so many parallels to small-scale housing providers. Considering the new Toronto Renoviction License has just been announced, it's timely for us to talk about this. 

Wait, Weiting, what do you mean parallels? 🤔

Prime Minister Justin Trudeau introduced the $10/day Canada-Wide Early Learning and Child Care (CWELCC) program as a cornerstone policy to make childcare more affordable across the country. 

That is freaking wonderful for a working mama of a startup!

What I didn't know was that it meant childcare providers were pressured to run their businesses with extreme cost and government oversight. 

Infographic explaining the cost control framework of the CWELCC
Shared by the National Committee of Childcare Reform of AACENATIONAL.CA

These childcare providers are often small businesses (just like how housing providers are small business owners) and a vast majority are operated by women (just like how many housing providers are minorities). 

Read more about childcare concerns

Government oversight brought in the 'cost control' framework for childcare operators. The problem is that it doesn't quite add up.

Childcare operators are screaming at the top of their lungs for help before they each leave the business entirely (very similar to how many housing providers are selling off their units).

By pushing 'for-profit' childcare operators to go 'non-profit', it's going to cause a significantly long waitlist (aka backlog) for children to get into childcare. 

Per the webinar hosted by AACE National: in Quebec, it's pushing childcare providers to make inappropriate upsells to make up for their low or non-existent margins. 

Comparing CWELCC and Toronto’s Renoviction By-Law

Doesn't it kind of, maybe just sort of, feel like the programs the government is trying to implement for small housing providers without thinking through all of the implementation, stakeholders, and money involved? E.g. The licensing programs, renovation licenses, the Tribunal processes, or the Sheriff backlogs is what we end up seeing as a by-product to what could be an efficient rental market. 

Read about Renoviction Bylaws Explained in Ontario.

The parallels between these two industries become even more evident when considering the domino effect such policies create. 

Comparative Analysis Table
Aspect CWELCC Program Toronto’s Renoviction License
Objective Make early childhood education affordable across Canada by capping costs at $10/day. Protect tenants from exploitative evictions during property renovations and maintain affordable housing stock.
Primary Beneficiaries Parents seeking affordable childcare services. Tenants needing stable and affordable rental housing.
Impact on Small-Scale Providers Small childcare providers face financial strain due to tight profit margins and increased government oversight. Small-scale landlords encounter challenges due to strict regulations and financial risks associated with compliance.
Unintended Consequences Many childcare providers may exit the industry, leading to longer waitlists and reduced childcare availability. Small landlords may sell their properties instead of complying, reducing the overall rental stock and availability.
Potential Outcome Risk of reduced access to affordable childcare. Risk of reduced availability of affordable rental units.

Both sectors show that while government policies aim to create fairness and affordability, without balanced implementation, they risk creating barriers that undermine their original objectives and negatively impact those they aim to help—renters and parents alike.

Concluding Thoughts

The CWELCC’s cost-control framework and the renoviction license's renovation compliance processes illustrate how sweeping regulatory measures can inadvertently place excessive strain on those they regulate. This oversight can create an environment where only larger, more financially secure entities survive, reducing competition and diversity in the market.

Great government leadership can yield beautiful results - there's so much more work to be done together. Balance is key to achieving the dual goals of protecting vulnerable populations and sustaining a healthy network of small business providers.

Thank you for supporting the advocacy work we do. Let's keep pushing for change!

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Weiting Bollu
Co-Founder & CEO, Openroom

About the Author

Weiting's entrepreneurial journey began with a costly lesson in rental property management, where she experienced losses exceeding $35,000 due to non-paying tenants. Determined to prevent others from facing similar challenges, she built Openroom to pave a future towards a transparent and connected rental ecosystem.

Drawing from her extensive background in software product management spanning education, telecommunications, insurance, and artificial intelligence, Weiting has become a trusted advisor to founders of venture-backed companies. Beyond the tech sphere, Weiting managed properties for over a decade and made significant contributions to community leadership. She’s served on the Board of Rotary District 7070 and chaired various organizational committees.

Weiting balances her professional endeavours with being a parent of two kids under two. Alongside thousands of other parents, she was awarded participation trophies in innovative improvisation, ever-changing expectations management, daily roadmap planning, and hardcore patience!

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