But then there will be no development. If we wish to enjoy the benefits of development we shall also have to learn to keep the bad loans within minimal limits. This will be possible when there is conducive environment for timely implementation of projects, banks are free from all sorts of external pressures, bank employees are competent and conscientious and the compliance of prudential regulations is ensured. A lot needs to be done in this regard. All over the world entrepreneurs accept challenges and exploit the opportunities by undertaking economic development projects.
Most projects succeed and the people enjoy the benefits.
Some projects may fail. Of these, some projects may experience problems due to factors beyond the control of the entrepreneurs. The factors may include abrupt change in government policies, change in the market because of cheap substitutes, and the main raw material becoming expensive due to the steps taken by foreign governments. The entrepreneurs sponsoring such projects may not make profits and service the loans. In some cases the loans are serviced but partly.