Kindergartens (Nurseries)

Sub-division of the Kindergartens sector

Kindergartens constitute an educational framework for children between the ages of 2 and 6. They may be divided into a number of main categories:
Public kindergartens - owned by local authorities and under the supervision of the Ministry of Education
Private kindergartens - privately owned and under the supervision of the Ministry of Education
Day-care centres - private or belonging to various countrywide organizations
Children's houses on kibbutzim - which accept children from neighbouring settlements on a fee paying basis.
This profile deals solely with private kindergartens.

Market characteristics of Kindergartens

The kindergartens operate ten months of the year (September to June inclusive). Some private kindergartens hold day camps during the summer holidays. Kindergartens with at least ten children above the age of two are subject to the Supervision of Schools Law.

Customers:

The market can be segmented by a number of criteria:
Geographic - proximity of the kindergarten to the children's homes
Socio-economic - a high income makes sending a child to a private kindergarten possible
Parents' employment - the child will remain at kindergarten until the afternoon.
Educational outlook - religious / educational streams
Workplace - setting up kindergartens at the parents' workplaces.

Competition

Competition stems primarily from similar educational settings.

Suppliers

Suppliers of equipment to kindergartens specialise in furnishings, indoor and outdoor play equipment and didactic aids, as well as food and hygiene products. There are many suppliers in the market, some of whom operate retail sales points, while others operate as agents who come to the kindergarten itself.

Marketing methods

• 1. Creating an advantage by creating uniqueness


• 2. Goodwill


• 3. Active marketing - distributing leaflets, advertising in the local press


• 4. A large proportion of the kindergartens are based on re-enrolment of children who remain beyond a single year of operation.

Factors affecting success

The main factor is goodwill - the kindergarten teacher's reputation and that of the kindergarten itself - at the professional level and in their approach towards children and education.

Entry barriers in the sector of Kindergartens

The initial cost of the necessary equipment, in accordance with the requirements of the Ministry of Education.
Meeting the criteria of the Ministry of Education and Culture and obtaining a licence.

Manpower

The regulations stipulate the number of job slots for preschools, in accordance with the number of children and their ages.
For a preschool with children aged 15 months to two years (up to 24 children) - a certified preschool teacher and two caregivers. For a preschool with children aged 3 - 4 (up to 35 children) - a certified preschool teacher and a preschool teacher's assistant.

Equipment required for Kindergartens

The required equipment is divided into compulsory equipment and additional equipment, according to the detailed list issued by the Education Division. Compulsory equipment includes first aid cabinet, kitchen furniture, household equipment and garden equipment.
The list of additional equipment is - furnishings, library, nature corner, doll corner, doctor corner, bricks, yard equipment, instruments for teaching music, general equipment for organising the various craft and play corners.

Investment required

The initial investment for opening a preschool depends on the area of the preschool, the type of facilities, equipment and games, the planned number of children and the hours of operation. The average estimated investment is NIS 70,000, before payment of rent on the building.

Customary payment terms in the sector

Customers:
Monthly payments by standing order, monthly billing or post-dated cheques.
Suppliers:
According to the quantity of work with the supplier and throughout the familiarisation period - up to EOM + 60.

Licences and certification

A business licence from the local authority is not required, but if the preschool is located in a residential area, advance permission for irregular use of a residential flat is required.
A licence must be obtained from the Preschool Supervision Department of the Ministry of Education and from the Health Ministry.

Insurance

Building and content insurance, third party insurance, employer's liability insurance, loss of profit insurance and accident insurance. In addition to the aforesaid, consulting with an insurance agent regarding required insurance is advisable.