Childcare And Entrepreneurship: A Business Case Study

Abstract

The Riverhouse Children’s Center is an actual day care business. The case is an example of a small niche-business common to locales across the United States. Riverhouse is atypical of private day care centers in that it is organized as a not-for-profit institution. The case reviews the benefits and pitfalls of obtaining not-for-profit tax status for a business. The case also presents the different pricing mechanisms embedded in the fee structure of the center. Case discussion questions lead students to suggest a restructuring of the revenue side of the business. Additionally, the case reveals that there may be non-monetary motivations for entrepreneurs and highlights the challenge of working within a tight budget.