Release of 2025 survey of former Minnesota family child care providers on factors contributing to business closure

The new survey provides insights into the reasons for family child care business closures in Minnesota during the last five years.

SAINT PAUL, MN, UNITED STATES, April 2, 2026 /EINPresswire.com/ -- Minnesota Management Analysis and Development (MAD), the Office on the Economic Status of Women (OESW), and the Office of the Ombuds for Family Child Care Providers (OFCCP) have released the Former Family Child Care Provider Survey Report. The survey, administered from August 2025 to September 2025, surveyed 483 respondents that had closed a family childcare business between 2020 and 2025. The results provide an overview of the commonly cited reasons for family child care closures and identifies ways to support providers moving forward.

Minnesota follows a national trend of declining family child care providers nationwide for many years. Minnesota lost a net total of 264 programs in 2024, a decrease of 4.4%, compared to a decrease of 4.1% in 2023.

“A lot has changed in the past five years since the last Former Family Child Care Provider Survey. We needed updated information to understand the unique challenges of owning a family childcare business in 2025. This survey provides essential and timely information to policymakers and advocates regarding the child care crisis affecting Minnesota’s families,” says Heather J. Heyer, Director of the Office on the Economic Status of Women.

The survey divides potential impacts into six categories and asks for respondents to rank their impact on a scale from no impact to high impact on closure. The results are described as the percentage of respondents that rated each factor as having a medium or high impact on their business closure. The factors with the highest ratings of impact are:
• Complying with other regulations (64%)
• Long hours/schedule (62%)
• Maintaining required paperwork/documentation (59%)
• Home maintenance requirements (wear and tear on my home) (59%)
• Lack of benefits (health insurance, retirement, etc.) (59%)

While 64% of respondents rated complying with regulations in general as having a medium to high impact, there was no single regulation that stood out as more impactful than others. Three-quarters or more of respondents indicated that the individual regulatory requirements had little to no impact on their business closure. This may suggest that it is the cumulative burden of all regulations that has a high impact on closure, rather than any one specific regulation.

The full survey report details the usage of financial supports such as the Child Care Assistance Programs and regional grants, and information about what other types of support would be helpful to providers in maintaining their business.

“There is an opportunity here to invest in these small businesses and help repair some of the economic impact that has been done to many communities and families due to closure of their business or an inability to seek affordable, quality childcare near their homes,” says Lisa Thompson, Ombuds for Family Child Care Providers.

Overall, slightly over half of respondents expressed that they closed their business sooner than they wanted, and 20% stated they would be interested in re-opening. Potential avenues to slow and reverse the closure of family childcare businesses in Minnesota identified by this survey include updated regulations, increased technical support related to business processes and resource access, a shift in messaging surrounding the value of family childcare to families and communities, and access to health and retirement benefits.

About the Office on the Economic Status of Women:
The OESW is a non-partisan office within the Minnesota Legislature that researches and reports on all matters relating to the economic status of women in Minnesota and barriers to the full participation by women in Minnesota’s economy.

About the Office of the Ombuds for Family Child Care Providers:
The OFCCP assists family child care providers with licensing, compliance, and other family child care issues. The ombuds is an independent resource for reliable information and expert guidance regarding family child care.

Heather J. Heyer
Office on the Economic Status of Women
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