The cost of living crisis is more than just a squeeze on household finances. For many households with low incomes and little or no savings, the impacts of rising food prices and high energy costs have been devastating for physical and mental well-being.

For these households and the communities in which they live, the wide range of services provided by local charities and social enterprises have never been in greater demand. Whether providing access to affordable finance or helping people return to work, many of these organisations are playing a key role in supporting those people who are hardest hit by economic pressures.

Many other social enterprises, who were previously focused on other areas of social or environmental good, are also now pivoting to meet local demands and address important issues relating to the poverty faced by their communities. However, this is coming at a cost to their own long-term mission, sustainability and growth prospects.

Not only are they facing major operational changes in service provision, but these same organisations are also battling against current economic pressures, particularly high energy costs, wage inflation and recruitment. At a time when demand on services is increasing, the volunteer pool is dwindling due to the cost of living.

Community Transport Glasgow (CTG) is one such social enterprise having to adapt to economic headwinds. CTG plays a major role in supporting the transport needs of people in some of Glasgow’s most disadvantaged areas. Those needs can range from getting to hospital appointments to ensuring that young people can participate in team sports at an affordable cost.

As a result of the squeeze in grants and service level agreements and the anticipation that this trend will continue, CTG is having to increase the percentage of revenue generated from vehicle hire income to meet increased costs, impacting its ability to maintain the same levels of community provision.

CTG is clearly not alone in this regard. The latest third sector tracker from the Scottish Council of Voluntary Organisations (SCVO) showed that financial pressures continue to dominate the Scottish third sector landscape, highlighting an increase in organisations reporting lower turnover. Those reporting lower turnover were also increasingly pessimistic about how long this will last. Rising costs were also a prevalent issue for third sector organisations, with all except a small minority seeing their costs rise. This has affected the ability of almost half of all organisations to deliver their core services or activities.

The strength of our social enterprise sector in Scotland has rightly been a source of pride for many years. However, if they are to remain a core component of a wellbeing economy, then they need our collective support. From consumers purchasing goods to businesses procuring services, from the allocation of government funding to the assessment of funding applications – we all have a part to play in ensuring that this sector can continue providing vital services, but yet has the resources to plan for a post-crisis sustainable future where it can continue to deliver positive impacts for communities across Scotland.

Chris Jamieson is Head of Investments, Social Investment Scotland