Financial Management of Private Preschool

Abstract

Early childhood services and education industry have grown steadily with a wide range of local and international franchise brands. This raises questions about the ability of private kindergartens and nurseries to compete in the market. The objective of this study is to analyze the basic aspects of the financial management of this institution and its ability to be viable and competitive. Data is obtained through questionnaires that are distributed to selected entrepreneurs and managers in the state of Selangor. Feedback from 52 institutions found that a large number of institutions have a sufficient number of children. Teachers are qualified but paid salaries on a low scale. Student management assistant is not provided due to small and varied size of classes. More kindergartens are in high-income categories compared to nurseries, but both institutional spendings are in lower categories. The registration fee varies between institutions but the kindergarten charges an additional fee at a higher rate compared to nurseries. There are preferential differences in operating expenses incurred between kindergartens and nurseries. Some recommendations to reduce the financial burden of private pre-school operators are discussed at the end of this article.