The National Day Nurseries Association (NDNA) commissioned Capacity, a public interest think-tank for children's services, to examine the impact of Government policy and look at how nursery owners can strengthen their businesses and diversify to respond to the changing market.
The report, Childcare: Good business for families and communities, identifies extended schools as 'probably the key factor in creating nervousness among private sector providers'.
Falling occupancy levels and plans for improved statutory maternity leave, which could mean fewer babies in daycare settings, are other major areas of concern for nursery owners, it says.
The researchers interviewed small day nurseries and larger chains, local authorities, policy experts and those working in social enterprise.
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