Return on Investment Study

Early Learning Ventures (ELV) completed a third-party Return on Investment (ROI) study to analyze its shared services model. The key findings of the study indicate the ELV model produces significant results for almost all participating child care providers, with the stronger returns for center-based providers. Click on the downloadable PDF files below to access the full ROI study, the Executive Summary, and this two-page Executive Brief.

The Landscape

Millions of U.S. children ages 6 weeks to 14 years old are in some form of “market-based” child care while parents work.

 

Unlike the K-12 system where all children can receive a free public education, only a fraction of the children in early childhood programs are supported by public funds.

 

The Problem

The quality of “market-based” care varies greatly but, overall, has been found to be of mediocre quality.

Market imperfections are a primary reason for the low quality of care in the child care market.

There is not enough demand to support a high level of quality as parents are unwilling or unable to pay the rates that providers must charge to offer higher quality care.

The Innovation

Early Learning Ventures is a non-regulatory innovation designed to mitigate the effects of child care market imperfections and improve child care quality.

Strong nonprofit organizations are selected to start ELV Alliances which then act as streamlined, central hubs to provide business support for the child care industry.

The ELV Alliance in turn brings technology and business practices to networks of center-based and family child care providers.

 

The Results

The ELV Alliance model creates operational efficiencies and economies of scale that allow child care providers to offer higher quality care at a lower cost.

The results of the ROI Study indicate that the ELV Shared Services model produces significant returns for almost all participating providers, with the strongest returns among center-based providers.

The ELV Shared Services model is evolving and constantly innovating – ROI results will continue to improve for both center-based and family child care providers.

Click on the following PDF document links to access the full ROI study, the ROI Executive Summary, and the ROI Executive Brief. If you would like a hard copy of the reports, please send a request to help@earlylearningventures.org.

 

ROI Executive Brief

ROI Executive Summary

ELV ROI Full Report