Bright Horizons Business Analysis

The company Bright Horizons offers innovative, employer sponsored quality child care and early education. Bright Horizons can be identified in the early education industry based on the definition of an industry which is a “group of organizations offering a similar product or service to the same customer group and/or drawing from the same resource pool (Strategic Planning a Practical Guide 2008). Bright Horizons does however, have some differences from other early education industries mainly on account of the fact of being employer sponsored. Therefore, it can be set apart from other early education centers since it can be considered a private early education industry as well. Early childhood education has many factors that link education to economic growth.

The key macroeconomic variables that affect early education industries such as Bright Horizons are employment and increased gross domestic product. According to Belfield of the University of New York (2006), the increase in employment can be accounted for because, “female labor force participation rates are increased somewhat, although the effects appear to be largely a function of mothers’ entry into the workforce a few time periods earlier than they otherwise might have. The labor force participation effects for those who receive early child education are also positive.” By more mothers entering the workforce because they feel comfortable sending their child to an early childhood center welfare also decreases. Early childhood education centers, such as Bright Horizons, are programs that allow parents to work, so in turn households increase labor market participation. Furthermore, studies show that children who invest time at a young age in early childhood education centers are said to have increased high school graduation and progress into college. Additionally, they go into the workplace at a higher rate than children who do not participate in these centers, therefore, raising economic growth.

A second macroeconomic variable that affects Bright Horizons is gross domestic product. Gross domestic product in this case is increased based upon human capital. Human capital is not only a function of the initial stock the individual is born with (genetic luck) but is produced over the life cycle by families, schools, and firms, although most discussions of skill formation focus on schools as the major producer of abilities and skill (Cavlier, 2006). By acquiring specific numbers of children product placement and construction increase. For example, by opening up a new early childhood education center new buildings are needed, new toys need to be acquired, and other supplies in general need to be purchased. The companies making these products also have an increase in production when working mothers feel content with their child’s early childhood center. This increase is based upon a working mother’s comfort level allowing her to be more productive in the work environment. A central conclusion of a vast body of research is that in most countries efficiency in public spending would be enhanced if human capital investment were directed more toward the young and away from older and less-skilled for whom human capital is a poor investment (Cavlier, 2006).

Bright Horizons faces several challenges and opportunities in the future. The main challenge comes into play because the company is an employer sponsored company. The challenge of being an employer sponsored company lie within companies themselves wanting to invest in an early childhood education center. With the job forces decreasing many companies do not want to involve themselves with the extra expense to open or invest in such a large facility. Another challenge is the turn-over rate. The average pay for a child care worker is $12.34 according to the Bureau of Labor Statistics. This often means that someone interested in the field will use early childhood education centers as a stepping stone to furthering their career in education.

On the other hand, some of the opportunities an early childhood education center such as Bright Horizons has to offer are job availability, location, and increasing number of women entering the workforce. With employment expected to increase by 18% in the next 8 years there are many opportunities to find a position in an early childhood education center. Additionally, with the availability increase more facilities have to be built therefore, the locations of centers will be more desirable. More women entering the workforce allow more children to have the chance to attend early childhood education which in turn creates more positions to work for.

In conclusion, by looking at the projected employment outcomes for early childhood education center this is a growing industry. This industry will seemingly continue to grow for years to come making more need for centers such as Bright Horizons to exist.

Arts Manager. (2008). Strategic Planning. Retrieved March 14, 2008, from
Blefield, C. (2006). Macroeconomics of Preschooling. Retrieved March 15, 2008, from
Cavlier, A. (2006). Economics and Early Childhood Economics. Retrieved March 16, 2008