How to describe the problem, need and objective of a project in a grant application?

The description of the problem, need and objective of a project in a grant application should show the logical link between the applicant's current situation, the planned investment and the effects to be achieved thanks to the grant. The problem identifies what is limiting the development of the company or institution. The need explains why action is necessary. The objective defines what will be achieved once the investment has been implemented and how this can be verified.

This part of the application sets out the logic of the entire project. If the problem is described too generally, the need is not supported by data and the objective is not linked to the budget and indicators, the project may be assessed as inconsistent. A good description should be specific, measurable and linked to the call documentation, but it should not mechanically repeat the call rules.

Why is the description of the problem, need and objective of a project important?

The assessing institution must understand why the project is needed, which barriers it removes, which activities will be undertaken and which effects can be achieved. A grant application is not merely an administrative form – it must demonstrate that the project is justified, feasible and consistent with the programme's objective. That is why the problem description cannot be detached from the budget, schedule, indicators, target group and results.

As indicated by the European Funds Portal, after a positive assessment a grant agreement is signed, and the application becomes an annex to it. The description prepared at the application stage therefore also matters during implementation and settlement.

What is the difference between a project's problem, need and objective?

In many applications these three concepts are confused. This is a common mistake – they perform different functions and should be described in a logical order:

• problem – what currently does not work, what is limiting development or which barrier needs to be removed (current state),
• need – why specific action should be taken and why the project is justified (necessity of change),
• objective – what will be achieved by implementing the project (target state),
• activities – how the objective will be achieved,
• indicators – confirmation that the objective has been achieved.

If these elements are consistent, the application is clear. If each of them describes something different, the assessor may conclude that the project lacks a clear intervention logic.

How to describe the problem in a grant application?

The problem should be described specifically and as objectively as possible. It is not enough to write that the company wants to grow, needs new equipment or wants to increase its competitiveness. A good problem description should include:

• an indication of the current barrier,
• a description of the impact of this barrier on the business,
• data or observations confirming the scale of the problem,
• a reference to the market, customers, processes, technology or formal requirements,
• an explanation of why the problem will not be solved without the project,
• a link between the problem and the objective of the call.

Example of a weak problem description: “The company has outdated equipment and wants to buy modern devices to improve its competitiveness.”

Example of a better problem description: “The company currently runs its production process using equipment with limited capacity, which results in long order lead times, higher material losses and an inability to accept more orders. Technical limitations affect unit production costs and make it difficult to enter the segment of customers who require shorter delivery times and consistent quality.”

In the second example, the problem is not described as a mere lack of equipment, but as a limitation of a business process. This is a fundamental difference: a grant should not be justified by the mere wish to make a purchase, but by the need to remove a specific barrier.

How to describe the need for the project?

The need for the project should follow directly from the problem described. If the problem is low process efficiency, the need may be to automate it. If the problem is a lack of access to diagnostics, the need may be to purchase equipment that makes it possible to extend the range of services. If the problem is insufficient energy efficiency, the need may be to modernise the technical infrastructure.

The description of the need should answer the following questions:

• why is the project needed right now?
• what consequences will there be if the project is not implemented?
• who will feel the effects of the project?
• does the need stem from data, a strategy, a market analysis or programme requirements?
• is the need linked to the costs planned in the budget?
• is the need real rather than artificially added to fit the call?

The need should not merely repeat the problem. The problem identifies the barrier, whereas the need justifies the direction of action – e.g. why it is necessary to increase capacity, improve quality, automate or implement a new technology.

How to formulate the project objective?

The project objective should be specific, achievable and linked to verifiable effects. It should not be a marketing slogan or a general statement such as “the objective of the project is to develop the company”. A good objective should indicate:

• what will be achieved,
• in which area of activity the change will take place,
• within what time frame the objective will be achieved,
• which activities will lead to the objective,
• which indicators will confirm that the objective has been achieved,
• how the objective fits the assumptions of the grant programme.

Example of a weak objective: “The objective of the project is to increase the company's competitiveness by purchasing modern equipment.”

Example of a better objective: “The objective of the project is to increase the company's capacity to fulfil orders with higher quality requirements by implementing an automated production process that will shorten order lead times, reduce material losses and make it possible to add new product variants to the offer.”

The second description is more useful because it shows the direction of change, how the effect will be achieved and the practical consequences for the business.

The principle of a logical sequence: problem – need – objective – activities – results

The best project descriptions follow a logical sequence in which each element results from the previous one:

• problem: the company has limited process efficiency and high unit costs,
• need: the process must be modernised and a technology that reduces losses must be implemented,
• objective: increasing production efficiency and the ability to handle new orders,
• activities: purchase of equipment, implementation of the system, staff training,
• results: shorter production time, lower material consumption, new products or services.

Such a structure helps avoid a situation in which the project is described as a set of purchases without explaining why they are needed. European Funds finance only specific expenditure, which should be incurred in a justified and efficient manner, in accordance with the law and the grant agreement – so what matters is not only the expenditure itself, but also its link to the project objective and the expected effect.

How to align the description with the objective of the grant programme?

The description of the problem, need and objective of the project should be linked to the programme's objective, but it should not copy it. The assessor must see that the project genuinely fits the call. Examples of matching the description to the type of project:

• investment project – which operational limitations will be removed,
• R&D project – what the research or technological problem is,
• digitalisation project – what the current limitations of processes and data are,
• energy project – current energy consumption, sources of losses and the planned improvement,
• healthcare project – the impact of the investment on the availability or quality of services,
• accessibility project – existing barriers and how they will be reduced,
• export project – the barrier to entering new markets,
• training project – the competence gap.

In programmes such as the SMART Path for SMEs, the application covers specific modules, e.g. R&D or implementation of innovation, and the call documentation defines their scope and purpose. According to information from PARP , in certain calls SMEs must include at least the R&D module or the innovation implementation module – the project objective should therefore reflect the actual nature of the planned activities.

The most common mistakes in describing the problem, need and objective

Mistakes in describing the problem

The most common mistake is describing the problem from the perspective of the purchase rather than the barrier. The applicant writes that they need a device, a vehicle, an IT system or a renewable energy installation, but does not explain which problem this expenditure solves. Mistakes worth avoiding:

• describing the problem solely as a lack of equipment,
• using general wording without data,
• copying the programme objective without reference to one's own project,
• no link between the problem and the budget,
• failing to identify the group that will benefit from the project,
• failing to explain why the project is needed now,
• describing many problems that are unrelated to the investment,
• inconsistency between the project description, indicators and schedule.

Instead of writing that the company wants to improve its competitiveness, it is better to indicate what is currently limiting it: long order lead times, insufficient quality, high costs, the inability to serve a particular group of customers or technological limitations.

Mistakes in describing the need

The need for the project should be convincing but not exaggerated. A description that is too general does not show that the project is justified, while one that is too emotional may sound unconvincing. Typical mistakes include:

• equating the need with the desire to obtain a grant,
• no data confirming the scale of the need,
• presenting the need as obvious, without justification,
• no link between the need and the programme objective,
• ignoring the consequences of not implementing the project,
• highlighting general benefits without showing the mechanism of change.

If the project concerns digitalisation, it is worth describing the current document flow, process handling times, the risk of errors and the lack of data integration. If it concerns the purchase of medical equipment – its impact on access to diagnostics, patient comfort, service time or the range of services. If it concerns a production investment – its impact on quality, efficiency and the ability to fulfil new orders.

Mistakes in formulating the objective

The project objective should be possible to account for. If it is too broad, it will later be difficult to demonstrate that it has been achieved. If it is too narrow, it may not show the real significance of the project. Typical mistakes include:

• formulating the objective as “purchase of a device”,
• failing to indicate the effect after project completion and a lack of measurability,
• using slogans without specific content,
• an objective that does not follow from the problem or is not supported by the activities,
• no link between the objective and the indicators,
• declaring effects that cannot be proven.

The objective should not read: “purchase of a CNC machine”. Purchasing a machine is an activity or a cost. The objective, on the other hand, may be to implement a new production process, increase machining precision, launch the production of a new product or reduce the number of production defects.

How to link the project objective with the indicators?

Indicators should follow from the project objective. If the objective is to improve access to services, the indicators should measure the extent of that improvement. If the objective is to implement an innovation – they should confirm the implementation of the product, process or technology. If the objective is energy efficiency – they should refer to energy consumption, emissions or savings.

When formulating indicators, it is worth checking:

• whether the indicator measures the actual effect of the project,
• whether the indicator value is realistic,
• whether the company will have documents confirming that the indicator has been achieved,
• whether the indicator complies with the call rules,
• whether the indicator declares effects that go beyond the scope of the project,
• whether the indicator can be achieved within the schedule,
• whether the indicator is consistent with the budget.

A description of the objective without indicators is merely a declaration. A description of the objective with indicators becomes the basis for assessing and later settling the project.

A practical outline for the description in a grant application

When preparing the project description, you can use a simple outline that organises the content and reduces the risk of inconsistencies:

• the applicant is currently in a specific situation,
• in this situation there is a specific problem or barrier,
• the problem has specific business, social, technical or organisational consequences,
• this gives rise to the need for the project,
• the project will include specific activities,
• the activities will lead to the objective being achieved,
• achievement of the objective will be confirmed by indicators,
• the project will be consistent with the programme objective and the eligibility rules.

Sample wording: “The company currently handles orders using a partly manual process, which extends lead times, increases the risk of errors and limits the ability to scale sales. This problem affects operating costs and makes it difficult to serve more customers without a proportional increase in staff. The need for the project stems from the necessity to automate the process, integrate data and increase operational efficiency. The objective of the project is to implement an integrated order management system that will shorten handling times, reduce the number of errors and enable further sales growth.”

Such a description is more useful than a general statement that the company wants to buy an IT system in order to develop its business.

How to prepare data for describing the problem, need and objective?

Before you start writing the application, it is worth gathering data that will confirm that the project is justified. These do not always have to be extensive analyses – in many cases specific internal information, quotations, operational data or technical documents are sufficient. Useful data include:

• current process efficiency and service lead time,
• the number of customers or orders handled,
• unit costs,
• the level of losses, errors or complaints,
• energy consumption data,
• data on current equipment and technical limitations,
• customer enquiries and market data,
• supplier quotations and technical documentation,
• results of an audit, analysis or diagnosis,
• information on legal or industry requirements.

The more specific the input material, the easier it is to prepare a convincing project description. Without data, the description often becomes general and does not show why the project deserves funding.

How can DOTACJE ONLINE help prepare the project description?

Preparing the description of the problem, need and objective of a project requires combining knowledge of the applicant's business, the programme rules, the eligibility of expenditure and the way applications are assessed. A mistake in this part may cause inconsistencies throughout the documentation.

As a first step, it is worth checking the available calls in the free grant search engine with an AI Assistant. Verification of the project logic and its consistency with the budget, schedule and indicators is covered by our service grant application preparation, and the business rationale for the project – in our business plan and business model consultation. The full scope of cooperation is described in our grant advisory services.

Summary

A good description of the problem, need and objective of a project should be logical, specific and consistent with the call documentation. The problem should show a real barrier, the need should justify the necessity of action, and the objective should indicate a measurable project effect.

Before submitting the application, it is worth checking:

• is the problem described specifically?
• does the need follow from the problem?
• is the objective more than just the name of a purchase?
• is the description linked to the budget?
• do the activities lead to the objective?
• do the indicators confirm the expected effects?
• does the project fit the programme objective?
• can the description be documented with data?
• will it be possible to implement and settle the project?

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