STATEMENT OF NEED

Nigeria, the most populous country in Africa has experienced severe economic hardship in the past twenty years. This has resulted in a decline in the country's overall prosperity and a concomitant shrinkage in job opportunities. During this period, education and health services within the country have deteriorated from already low levels, while unemployment rates and poverty levels have increased drastically. With low GDP growth of under 5% per year, an average per capita income of under $300, weak currency and high inflation, Nigeria has been unable to effectively compete in the global arena.

Rapid urbanization of the nation, coupled with a shrinking economy, has created an environment in which over 70% of the recent graduates who reside in urban areas are unemployed. While a significant percentage of these graduates have entrepreneurial aspirations, and have attempted to create self-employment opportunities, only a few actually succeed. The vast majority, with limited entrepreneurial skills, networks and financing, remain frustrated and discouraged.

Unfortunately, little progress has been made by the private, public and NGO sectors in Nigeria to provide an enabling environment for the promotion of business development among urban youth. Even though they constitute a sizeable percentage of the population, in this class and age-based society, they are typically not regarded as serious contributors to the economy.

While governments of other developing countries have recognized the need for small business development among their youth and have encouraged private sector-led growth in this area, Nigeria has not proactively implemented similar initiatives.

Historically, Nigerian initiatives have focused on "micro" entrepreneurs in the rural areas, as demonstrated by the emergence of organizations such as the Peoples Bank and FEAP, and in more recent times PAP. In addition, other initiatives have focused on established entrepreneurs in the urban areas and while these are all laudable initiatives with noble goals, they have not attempted to address the unique needs of urban youth. As a result, these youth remain a vulnerable and neglected segment of the society.

FATE's approach therefore is to target this class of society with the objective of empowering them to create wealth by awakening, developing and supporting their enterpreneurial instincts. We believe that our approach will successfully break the cycle of unemployment-induced poverty in our society.