The Ark Day Nursery in Mytholmroyd is one of only 12 employers in the country to be named as a finalist in the Learning and Skills Council national Apprenticeship Awards 2008.
It was shortlisted as one of three finalists in the Small Employer of the Year category.
The awards are designed to recognise employers who use apprentices to improve business performance.
And in a separate honour James Averdieck, founder and managing director of luxury dessert firm Gu was at The Ark to celebrate the nursery's skills pledge. The pledge means the business has made a commitment to ensure all staff are appropriately trained in their fields.
During his visit Mr Averdieck made Rice Krispies cakes with the children and created some paintings.
Heidi Bingham, co-owner, said: "It is nice to be recognised by other business people for the hard work and effort we put in.
"It is also nice to receive positive feedback and see how amazed people are at the work we do here."
Ark Day Nursery has rapidly developed over the last six years and the apprentices have helped maintain the high standards of care that have led to business success.
Heidi said: "We are pleased to be nominated and nervous to be in the finals.
"It is good for our sector, especially with the Government's current initiative to raise the profile of those in childcare."
The nursery joins two other Yorkshire finalists.
Leeds ICT company Complete Computer Systems is finalist for Micro Employer of the Year, and Skipton's Claire Harrison is a contender for Apprentice of the Year.
There are 300 children registered at the nursery, which employs 45 people.