Survey: Small Business Growth Negatively Impacted by Lack of Affordable Childcare

On Jun 24, 2024

New survey data from Goldman Sachs 10,000 Small Businesses Voices highlighted a significant barrier to small business growth: the lack of affordable and accessible childcare. A majority of small business owners report that there are insufficient affordable childcare programs in their communities. Over one-third of owners noted that their employees have been forced to cut their work hours or forgo work entirely because of childcare challenges. Furthermore, small business owners are eager for policy solutions to address these issues, including federally-funded programs and tax credits to offer child care benefits.

Specifically, the new survey of small business owners found:

• 84% believe it has been difficult for working parents to afford high-quality childcare programs for their children (66% very difficult,
• 18% somewhat difficult), while only 2% say it has not been difficult at all.
• More than half (57%) say that where they live, there are not enough childcare programs that are high-quality and affordable.
• More than a third (35%) say their employees have been forced to cut their work hours or forgo work entirely because of the cost and/or availability of childcare.
• 38% say that a lack of childcare has had a negative impact on their ability to operate or grow their business.
• 62% say that being able to offer a childcare benefit to their employees would have a positive impact on talent recruitment and retention.

The new data identifies potential policy solutions that small businesses would support to address this challenge. Seventy-seven percent of small business owners would support policymakers increasing federal funding programs that help family’s better access affordable childcare. And 70% would support legislation to increase the tax credit available to businesses who want to locate or provide childcare for their workforce from $150,000 to $500,000.

Goldman Sachs 10,000 Small Businesses Voices recently revealed that small business owners overwhelmingly believe that their issues are not being sufficiently addressed by 2024 candidates. Specifically, 55% of small business owners said that access to affordable childcare has not been sufficiently addressed on the campaign trail.

“Small business owners have made clear that the childcare crisis is exacerbating the biggest challenge they’re facing right now – hiring and retaining qualified employees,” said Jill McCarthy, national director, Goldman Sachs 10,000 Small Businesses Voices. “Ensuring small business owners’ voices are heard on this issue by our local, state and federal elected officials is a priority for Goldman Sachs 10,000 Small Businesses Voices.”

The nationwide survey of 1,259 small business owners was taken April 15-19, 2024. Respondents came from 47 U.S. States, Puerto Rico and Washington, D.C.

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