Limited access to traditional financing: SCOs often struggle to secure loans or grants from traditional financial institutions due to their small size, lack of collateral, and limited financial history.

Voluntary nature of contributions: SCOs rely heavily on voluntary contributions from members and the community, which can be unpredictable and insufficient to meet their financial needs.

High operating costs: Running an SCO often requires significant resources, including staff salaries, rent, and utilities. These costs can be difficult to cover with limited funding sources.

Limited ability to charge for services: SCOs often provide essential services to their communities, but they may be unable to charge market rates due to the low-income status of their members or the desire to keep services affordable.

Dependence on grants and donations: SCOs may be overly reliant on grants and donations from funders, which can create a reliance on external funding and make it difficult to plan for the future.

Limited ability to generate revenue from commercial activities: SCOs may have difficulty generating revenue from commercial activities due to their focus on social goals and their limited capacity to compete with businesses in the marketplace.

Lack of access to venture capital: SCOs are often not considered attractive investment opportunities by venture capitalists due to their perceived risks and lack of clear financial returns.

Limited understanding of investment opportunities: SCOs may not have the expertise or resources to identify and pursue appropriate investment opportunities.

Difficulties with fundraising and investment management: Managing investments can be challenging for SCOs with limited resources and expertise.