Empowering Women ECD Entrepreneurs for a Fairer Start
From villages and townships to cities and suburbs, Black women are the backbone of South Africa’s early childhood development (ECD) sector, representing more than 90% of the 200,000-strong workforce. These women-led businesses are more than places of learning, they are lifelines for families and anchors of community wellbeing. Yet the latest Thrive by Five Index, the country’s largest survey of preschool child outcomes, shows that too many of these small businesses are underfunded, unstable and unable to give children the fair start they deserve.
According to the findings, released earlier this month by DataDrive2030 and the Department of Basic Education, only 42% of four-year-olds in early learning programmes (ELPs) are developmentally on track, unchanged since the Index was first published in 2021. Children enrolled in low-fee ELPs (under R50 per month) are half as likely to be on track as those in high-fee ELPs (more than R1,690 per month). And nearly a third of children are not enrolled in any ELP at all. For them, the odds are even worse: just 18% are on track.
For IMBE, the message is clear: if we want children to thrive, we must empower the women who power early learning.
Breaking the Inequality Cycle
The Index highlights the remarkable entrepreneurial nature of the ECD sector: more than half of all ELPs were founded by the women who still lead them today, with another quarter established by previous principals. These are genuine business owners managing complex operations, from staff recruitment and financial planning to regulatory compliance and family engagement. Yet they’re operating in an environment where financial sustainability is a constant struggle.
The data paints a stark picture. Many practitioners take home below minimum wage and lack basic protections, while over a quarter are considering leaving the sector. Government support reaches only 44% of ELPs, and even then, just 39% of those receive the subsidy of R17 per child per day on time and in full. This forces 97% of programmes to depend on parent fees as their main source of income. But with families under severe economic pressure, only one in five ELPs managed to collect all fees in the month before the survey.
This creates a vicious cycle: financial instability undermines programme quality, which particularly affects children from lower-income households, where the need for strong early learning is the greatest. When 79% of principals cite financial constraints as barriers to their work, and 57% say they lack resources to run quality programmes, the connection between business sustainability and child outcomes becomes undeniable.
Insights from the study point to a fundamental truth: programme quality cannot be separated from business viability. ELPs with more stable and reliable income consistently demonstrate better outcomes across all developmental domains, not because they charge higher fees, but because financial sustainability enables investment in quality staff, learning materials and teaching practices.
For many programmes in underserved communities, however, raising fees simply isn’t an option. That’s why IMBE focuses on helping owners develop products and services that diversify revenue streams and strengthen their businesses without placing additional burden on families.
Backing Principals as Business Leaders
The Index also reveals a critical gap in leadership support. Fewer than half of principals received any in-service training or professional development opportunities during 2023-2024, despite being responsible for both educational quality and business management.
The report’s recommendations are unambiguous: “invest in principals as both pedagogical leaders and capable managers, equipping them with the financial and administrative skills to run sustainable ELPs.”
At IMBE, this reality underpins everything we do. We work with women-owned micro-enterprises in the ECD sector, helping them build financially viable and resilient businesses that sustain livelihoods, deliver quality care and education, and anchor their communities.
Our programmes equip ELP owners with the business and leadership skills they need to thrive, including:
When ECD owners are backed as leaders, not just caregivers, they create stable, supportive environments where children, and their businesses, flourish.
A Path Forward
The Thrive by Five Index 2024 reinforces IMBE’s approach: when women ECD entrepreneurs are supported as business leaders, the impact goes beyond individual success to create systemic change that benefits entire communities. When these businesses thrive, children receive better care, families gain access to quality early learning, and communities build stronger economic foundations.
The data shows that quality early childhood development is possible, but it depends on sustainable business models. By continuing to invest in women ECD entrepreneurs as capable business leaders, IMBE is addressing one of the root causes of inequality in early learning outcomes.
Every child deserves the foundation that quality early learning provides. Achieving this requires more than just policy recommendations. It means investing in the women who own and operate the majority of South Africa’s early learning programmes, because when we invest in them, we’re investing in the children they serve.
