Cost of livng: Scotland’s third sector needs support to ride out this storm - Lindsay Wake

Over the last three years, it feels like there has been a revolving door of economic uncertainty and once-in-a-lifetime world events, and going by current circumstances, that volatility shows no signs of slowing down. The cost of living is increasing at rates unseen since the 1970s and every week we hear of people and businesses struggling because of rising costs.

Scotland’s charities and social enterprises provided a critical community lifeline during the pandemic, supporting the health and wealth of communities across the country. Now, with another economic crisis looming, it is more important than ever to provide the support this usually thriving ecosystem needs.

Our annual impact report for 2021/22 shows that over the last financial year, SIS active loans and investments surpassed £41 million across 201 social enterprises, community organisations and impact-led businesses – a record increase during our 21-year history. At the same time, the activities of SIS, either directly or indirectly, benefited 4.3 million people, making a real, measurable, and sustainable impact on communities and people’s lives.

However, we know from experience that many of these social enterprises will acutely feel the impacts of another economic crisis, particularly at a time when they were recovering from previous shocks.

Lindsay Wake, head of Impact, Social Investment Scotland (SIS)

Building resilience and financial sustainability will be essential over the weeks and months ahead if we are to continue to grow Scotland’s impact economy. The foundations may be in place, but many in our sector are clearly telling us of a challenging operating environment, coupled with even greater demand for support from the people they serve.

Third-sector networks and support organisations can help offer a valuable lifeline. The Scottish Council for Voluntary Organisations (SCVO) has created a new #RunningCostsCrisis hub with information and resources to help, while at SIS we have developed a series of webinars bringing in different experts to offer guidance on specific challenges. Keeping in touch with our customers is paramount, whether daily or weekly, to understand how best to help them navigate difficulties.

Collaboration is also a fundamental tool in our armoury, and we are working to connect people and create valuable partnerships that will underpin the growth of the impact economy. It’s about being as bold as we can to broaden and intensify the impact of all the organisations, investors and companies SIS interacts with and, as a society, providing the right environment and opportunities for third sector and purpose-led organisations to maximise their impact.

Our social enterprises and charities have the potential to play a far more significant role across Scotland in the months and years ahead. So as the spectre of recession looms larger, ensuring that we support these organisations to remain resilient, sustainable and emerge stronger in the wake of another economic crisis will be key to building an impact economy that delivers inclusive growth, in Scotland and beyond.

Lindsay Wake, head of Impact, Social Investment Scotland (SIS)