CHILDCARE RESOURCES
FOR ENTREPRENEURS & EMPLOYERS
Childcare isn't just a family issue — it's an economic development issue. A report from the U.S. Chamber of Commerce Foundation, produced in partnership with the Grand Rapids Chamber and Michigan Chamber of Commerce, found that childcare challenges cost Michigan's economy an estimated $2.88 billion annually through employer losses from turnover and absenteeism and lost state tax revenue. Closer to home, a 2024 regional assessment by the Early Childhood Education Task Force of the Upper Peninsula found that in much of the U.P., there are three or more children competing for every licensed childcare spot — and in some areas, no licensed spots at all. Over half of U.P. families surveyed were spending more than double the federally defined threshold for "affordable" childcare, and employers reported that childcare challenges were driving absenteeism, turnover, and lost recruitment. Addressing childcare supply is essential to attracting and retaining the workforce our communities need to grow.
For Entrepreneurs: Starting a Childcare Business in Michigan
Michigan needs more licensed childcare providers — and there are local and state resources to help you get there.
Copper Country Great Start Collaborative - Start Small Initiative
The Start Small initiative, led by the Copper Country Great Start Collaborative, was created to address one of the region’s most pressing workforce challenges: a shortage of childcare providers and available childcare slots.
Start Small focuses on supporting individuals who want to open licensed childcare businesses in the Copper Country. Through training, mentorship, and startup support, the program helps new providers navigate licensing requirements, develop sustainable business models, and create high-quality childcare environments.
By lowering barriers to entry and providing hands-on support, Start Small helps expand the number of childcare providers across the region, increasing childcare availability for working families while also creating new small business opportunities.
The initiative is a collaboration between community organizations, early childhood professionals, and regional partners working together to strengthen the childcare ecosystem in Houghton, Keweenaw, and Baraga counties.
Start Small program impacts include:
- 5 new licensed childcare businesses opened/expanded
- 67 childcare slots created for local families
- Increased support networks for childcare providers
State of Michigan Resources
The State of Michigan offers a step-by-step guide to licensure covering all three license types:
- Family Child Care Home — care for 1–6 unrelated children in your home
- Group Child Care Home — care for 7–12 unrelated children in your home
- Child Care Center — care in a commercial facility for any number of children under 13
The process includes steps like background checks, CPR/first aid certification, health inspections, and an orientation before your initial license is issued.
For Employers: MI Tri-Share Child Care Program
MI Tri-Share is a Michigan workforce development program that makes childcare more affordable by splitting the cost three ways: one-third paid by the employee, one-third by the employer, and one-third by the State of Michigan.
Who it's for: Michigan employers and working parents with household incomes between 201% and 325% of the Federal Poverty Level. Funds can be used for any licensed childcare provider serving children ages 0–17, including preschool, before/after school care, and summer programs.
For employers, participating in MI Tri-Share is a recruitment and retention tool — a meaningful, low-cost benefit that helps your employees stay in the workforce.
Understanding the Issue
The MSU Child Care Mapping Project, supported by MiLEAP, tracks Michigan's childcare landscape in real time — including where deserts are growing or shrinking and how state investments are flowing. It's a good resource for anyone trying to understand the scope of the problem or make the case for action in their community.
The ECE Task Force of the Upper Peninsula's 2024 Regional Action Plan offers a deep look at childcare supply, demand, and barriers specific to our region, with data from employer surveys, parent surveys, and assessments of municipal zoning and available building stock across all 15 U.P. counties.
Questions?
Keweenaw Economic Development Alliance (KEDA) is a partner in the U.P. Regional Child Care Coalition. We can connect you with local resources, technical assistance, and programs that support both employers and childcare entrepreneurs.