For many early childhood development centres in Orange Farm, the biggest challenge is not attracting children but managing the limited money available to keep their doors open. Now, local preschool owners are changing how they handle their finances after discovering that proper record-keeping could make the difference between surviving and building sustainable businesses.
With rising operating costs, low school fees and families struggling financially, Early Childhood Development (ECD) centre owners often find themselves balancing the responsibility of providing quality education with the realities of running a small business.
Many centres serve between 30 and 45 children, yet their owners must manage staff, cover operating expenses, maintain educational standards and meet registration requirements, often with limited financial resources.
For some practitioners, the challenge has been understanding exactly how much money their centres generate and where it is being spent.
From collecting school fees to managing a business
Gloria Phakathi, owner of Kanana Stars ECD in Orange Farm, is among the practitioners who have started changing their approach to financial management.
“For the first time, I’m properly keeping track of what I’m making and what I’m spending. This is now my second month being able to account for my money, and honestly, that feels like such a big achievement for me,” Phakathi said.
Her experience highlights a challenge facing many community-based ECD centres: providing an essential service without necessarily having the financial training required to operate sustainably.
Phakathi’s progress followed her participation in a six-week business accelerator implemented by Grow ECD and funded by the Futuregrowth Community Property Fund (Comprop).
The programme, hosted at Eyethu Orange Farm Mall from 19 August to 23 September, brought together 26 ECD centre owners and principals.
Rather than focusing exclusively on teaching methods, the training addressed the business operations that determine whether centres can remain functional over time.
Understanding the hidden costs of running a preschool
Phillys Martin from Little Angels Day Care Centre said the programme helped her recognise weaknesses in her centre’s financial administration.
“I realised that although money was coming in, we weren’t really keeping proper records,” Martin explained.
She said the training demonstrated that generating income is only one part of operating a successful centre.
“You need to know where your money is going, keep proper records and manage it intentionally.”
For ECD owners operating on narrow margins, understanding cash flow, tracking expenses and distinguishing income from profit can help them make more informed decisions.
These practices are particularly important in communities where centres must keep fees affordable while meeting operational and educational responsibilities.
Without reliable financial records, owners may struggle to assess whether their income can cover expenses or support future improvements.
A practical response to a community challenge
Grow ECD’s business accelerator was designed to address these gaps through practical training in leadership, personal financial wellbeing, sustainability planning, cash flow management, record-keeping, profit and loss, centre registration and regulatory compliance.
Lyndsey Petro, Head of Partnerships at Grow ECD, said many practitioners enter the ECD sector because of their passion for children but lack access to business training.
“Many ECD centre owners enter the sector because they have a passion for children, but they rarely have access to the business training needed to run sustainable centres. The Accelerator helps bridge that gap,” Petro said.
The approach recognises that improving early childhood education requires more than classroom resources. It also depends on the ability of centre owners to manage finances, meet regulatory requirements and plan for future growth.
For Christinah Moloi from Dimpho Tse Ntle Day Care, the intervention has already influenced how she approaches administration.
“The programme taught me how to stay on top of my administration and be more intentional about how I run my business. Going into next year, I feel far more confident and disciplined in what I’m doing,” Moloi said.
Are the changes producing results?
According to Grow ECD, assessments conducted after the programme showed significant improvements in participants’ knowledge and confidence.
The strongest improvements were reported in financial management, record-keeping, understanding profit and loss, tracking expenses, compliance and registration procedures.
Every training module received at least 92% “very helpful” ratings from participants.
These findings suggest that practical business education can address important knowledge gaps among ECD entrepreneurs.
However, improved knowledge and positive participant feedback do not automatically mean centres have become financially stable.
Grow ECD has not yet released long-term financial performance figures showing whether participating centres have increased their income, reduced operating losses or improved their ability to meet regulatory requirements.
The experiences of Phakathi, Martin and Moloi provide early evidence of changes in financial practices, but further monitoring will be necessary to determine whether these improvements are sustained.
Why financial stability matters for children
The sustainability of ECD centres affects more than their owners.
When a centre experiences financial difficulties, its ability to maintain learning resources, manage staff and provide consistent services can come under pressure.
For working parents, particularly those relying on affordable community-based childcare, stable ECD services are important for both children’s development and household routines.
Smital Rambhai, Portfolio Manager of the Futuregrowth Community Property Fund, said investment in early childhood development has benefits beyond the centres themselves.
“Quality early childhood development is one of the most impactful investments in a community,” Rambhai said.
He explained that supporting ECD businesses could strengthen educational opportunities while helping preserve meaningful employment for staff.
Can the improvements last?
Grow ECD plans to conduct site visits and assessments to identify centres eligible to join its Small Business Programme, which provides further support.
This next phase will be important in establishing whether the training has helped practitioners translate new knowledge into lasting operational improvements.
The initiative also raises a broader question about the support available to small ECD centres in communities such as Orange Farm.
While many practitioners are committed to providing quality education, their ability to sustain these services can depend on access to financial skills, administrative support and continued mentorship.
The Orange Farm experience offers an example of how targeted business training can respond to these challenges, but it also demonstrates why follow-up support and measurable outcomes matter.
For Phakathi, the change has already begun with something simple: knowing exactly what comes in and what goes out.
Whether similar improvements across participating centres will translate into stronger businesses and more reliable early learning opportunities remains an important story to follow.
