In one paragraph, summarize your proposal from beginning to end. You may want to write this section last. This is where you present the problem you are trying to solve. Stick to one problem. Avoid circular logic in your thinking and in the development of your statement of need.
Circular logic decrees that the lack of a solution is the problem.
Requesting scholarship funds as a solution to the lack of scholarship funds is an example of circular logic. A more convincing argument is based on a problem with a much larger scope. For example, women are greatly underrepresented in engineering-related fields and scholarship funds will enable more women to pursue engineering as a career choice. Use a logical progression in your statement of need starting as globally as possible. You will need to prove that you have an understanding of the problem and the latest research on the problem.