Our son went into daycare the week of his 2nd birthday. Prior to that, he'd had the mother of a neighbor come to our house to watch him.
The first week was a little hard on him, but his anxiety only lasted a few minutes, and being professionals, they were able to get him preoccupied in something interesting making the transition so much easier.
I've always been a working Mom, so it was probably easier on me to leave than it may be on you having been one of his sole providers to this point. My advice for you is to take him in and leave no matter how hard it is. Had we stayed to placate him, he would have had a harder time.
There is NO better feeling than seeing the look on your child's face at the end of the day when you go to pick them up. Their faces are so enlightened, and the hugs are incomparable.
Good luck to all of you - I was laid off last May, and there is nothing fun about the experience. I hope it does not affect your family.