I will grant you that in a heartbeat....just two days ago, I found out that a licensed provider not far from me got into trouble for having too many children in her care, twice her legal limit. She wasn't caught by the licensing inspector, but by the fire marshal. If the licensing inspector had caught her she would have been shut down immediately. She tried to plead that she needed a special exception because she has excessive credit card debt
I'm not saying that there aren't licensed providers who are bad news, I'm not saying that there aren't some who figure out how to work the system....someone recently told me about a provider who was one child over the limit and when the inspector showed up for a surprise visit, hid one of the kids in the bathroom....
BUT as a rule, knowing that you could be reported to the authorities for something and lose your livelihood and knowing that you could be inspected at any time for any reason will keep most people operating above board. The fact that someone is operating without a license is a sure sign that they are inclined to take shortcuts. Also, ironically, it is easier for someone operating illegally to continue to do so than it is for licensed provider....
If you are a licensed provider, your neighbors know it. If you do something wrong, your neighbors will report you and you will have to answer to the licensing inspectors.
If you are an unlicensed provider, your neighbors know it and either a) won't report you because you are watching their kids, or b) will report you and when the licensing inspector shows up at your home, you can lie through your teeth and tell them either that there are not kids there and refused to admit the inspector because they aren't the police and they don't have a warrant (licensed providers who refuse admittance get an instant suspension) or else, the unlicensed provider claims all these kids are her cousins and the kids' parents will write a letter swearing to it or else get their kid tossed out.
Why would you want to take your child to someone who disregards this law...how many other laws will they disregard and how many other shortcuts will they take with your child's care. Of course, having a license is not a full proof protection for your child. I never said that. A diligent parent needs to check out their caregiver. Check references, show up really early one day and "forget" to mention you were off work early....(as a provider, I only ask that you take your child home with you after that surprise visit because they are going to have a royal meltdown if you try to leave without them)
But I will challenge all the diligent parents out there to ask, "are you licensed?" and if no, "why not?" Because I can't think of a single good answer to that second question.