Challenges facing the sector Looking at the challenges facing voluntary, community and social enterprise sector, we asked about funding expectations, reserves and demand for services. Even in this current era of austerity, where funding and statutory support for the voluntary, community and social enterprise sector is being cut, most organisations are relatively optimistic about their funding. However, 24% or organisations surveyed anticipating receiving less funding in 2015/16 compared to the following year. A significant proportion of respondents anticipated having to use reserves to remain operational Organisations have seen an increase in demand for services. As the Austerity pinches, there are not only more people in need and the sector notes the issues faced by people using their services have become more complicated. And yet this all comes in a time when services are being pinched and funding less certain.