As the state of Illinois moves toward an integrated system of universally accessible early care and education, policymakers grapple with issues regarding who, where, how, and at what cost quality services should be provided. In order to inform this policy debate, this report describes the for-profit sector of Illinois' formal early care and education service delivery system. The report examines commonly-held perceptions about for-profit child care, concerns of for-profit owners, and whether policies give some providers competitive advantage. Organized in six sections, the report begins with an examination of the unique economics of the early care and education market. Section 2 reports on increasing competition between sectors, noting that the several forces have resulted in great volatility, low profit margins in the for-profit sector, and continual threats to the competitive edge any individual provider might temporarily enjoy. Section 3 describes the variety of nonprofit and for-profit care and education choices in Illinois. Section 4 compares the assets and challenges facing for-profit and nonprofit centers, focusing on access to capital for expansion or facility improvements, access to operating revenue, blended funding streams, revenues and spending, management issues, resources to enhance program quality, and program appeal to parents. Section 5 discusses the implications of characteristics of quality programs for nonprofit and for-profit centers. Section 6 summarizes findings, makes recommendations, and outlines action steps. The report's two appendices summarize key characteristics and differences between legal entities providing early care and education services, and profile salaries and staff of selected child care centers in Illinois. (Contains 33 references.) (KB)