For millions of working women and entrepreneurs, the true cost of doing business isn’t measured solely in dollars and cents — it’s also counted in hours spent arranging daycare, juggling nap schedules, or making difficult choices between scaling a company and staying home with a child.
In both developed and emerging economies, the cost and availability of childcare has become one of the most critical — and underappreciated — financial factors shaping women’s economic outcomes. Whether she’s a corporate executive, a freelancer, or a founder, today’s working mother is navigating a system that still often places the burden of care squarely on her shoulders.
And that burden carries a steep price.
A Financial Penalty Hidden in Plain Sight
In the U.S. and Canada, childcare expenses now rival mortgage payments. According to a 2024 report from the Economic Policy Institute, the average annual cost of infant care in the U.S. is over $15,000 — more than in-state college tuition in many states. In Canada, families in major cities like Toronto and Vancouver spend between $12,000 and $20,000 annually per child.
For dual-income households, the hit is significant but manageable. For single mothers, freelancers, or startup founders — particularly in early-stage ventures — this cost can be a make-or-break factor.
“In my first year of business, childcare cost more than my startup earned,” says Keisha Langley, a 35-year-old e-commerce founder based in Atlanta. “I had to delay scaling my company because I simply couldn’t afford to be away from my toddler.”
Entrepreneurship: Flexible, But Not Free
For some women, entrepreneurship is a solution to inflexible workplaces. But flexibility doesn’t eliminate the childcare burden — it simply reshapes it.
Working from home may allow a mother to avoid commuting, but it doesn’t reduce the cognitive and emotional load of balancing client calls with school pickups or sick days. As a result, many mom-owned businesses report slower growth trajectories in the early years.
“People think running your own business makes childcare easier,” says Marissa Chen, co-founder of a Toronto-based design agency and mother of two. “In reality, every hour I spend managing my kids is an hour I’m not billing — and that directly impacts our revenue.”
The Gender Investment Gap
Childcare also indirectly contributes to the persistent gender funding gap in entrepreneurship. Investors often expect startups to grow fast and demand total availability from founders — an expectation that’s structurally biased against women with caregiving responsibilities.
A 2023 Crunchbase report showed that only 2% of venture capital went to women-only founding teams. Among mom entrepreneurs, that number is even lower.
“One investor asked me, ‘Who’s watching your kids while you’re pitching?’” recalls Amina Yusuf, a UAE-based fintech founder. “Would he ever ask a male founder that question?”
The Hidden Tax on Career Advancement
Even in salaried employment, the cost of care affects women’s long-term earning potential. Many mothers reduce hours, decline promotions, or take career breaks to manage family life — decisions that compound over time in the form of lost wages, smaller pensions, and slower advancement.
A 2023 McKinsey study found that women with children under age 5 were twice as likely to work part-time than men in the same households. Over a 10-year span, that translates to hundreds of thousands of dollars in lost income and benefits.
Policy Lags Behind Reality
While many countries have taken steps toward parental leave and subsidized care, the reality is still bleak for most families.
- In the U.S., childcare remains largely privatized, with limited government support outside of specific income thresholds.
- In Canada, the federal government has committed to $10/day childcare, but rollout is uneven and availability remains scarce in many regions.
- In the UAE, private childcare is costly, and while some large employers offer on-site nurseries, this is far from standard.
These gaps force women to rely on informal networks, patchwork solutions, or personal sacrifices to stay in the workforce.
Solutions Start with Recognition
Solving the childcare burden requires rethinking care as infrastructure, not a personal issue. It’s an economic engine — one that allows women to fully participate in the labor market and entrepreneurship.
Policy solutions could include:
- Tax incentives or credits for self-employed mothers and startups that provide on-site care
- Universal pre-K and subsidized early childhood programs
- Corporate investment in flexible schedules, parental support, and family-friendly benefits
- Venture funds that account for caregiving realities in their expectations for growth
For businesses and governments alike, investing in childcare is not a concession — it’s an investment in the productivity, innovation, and economic potential of half the workforce.
A New Bottom Line
In an era where equity and inclusion are top of mind, the conversation about women in business cannot be separated from the realities of childcare. For every mom CEO or working professional who rises, there are millions silently calculating whether they can afford to keep going.
Until care is accounted for, women will continue to pay a price — in lost income, stalled businesses, and untapped potential.
It’s time we reframe childcare for what it truly is: a critical lever of economic empowerment.
