Building on Missouri’s Entrepreneurial Ecosystems

1. Building on Missouri’s Entrepreneurial Ecosystems 2011 Governors Conference on Economic Development Peter J. deSilva President and COO UMB Financial Corporation Chairman and CEO UMB Bank

2. Agenda Condition of the global, national and state economy Building Missouri’s future economy The importance of entrepreneurial ecosystems

3. Economic Uncertainty

4. FINANCIAL ENTREPRENEURIAL INTELLECTUAL Financial CapitalIntellectual Capital Entrepreneurial Capital

6. 1998 World GDP 30%: U.S. share 22%: Emerging markets share 2009 World GDP 25%: U.S. share 32%: Emerging markets share

7. U.S. GDP 1998 – 2009Total Growth Rate

8. GDP Has Grown by More Than $5 Trillion Adding the equivalent of a China to U.S. GDP

9. U.S. Net New JobsCreated in the Last Ten Years Yet, no net job growth in the past ten years

10. Missouri is Home to 11 Fortune 500 Companies, Ranking Us 16th Nationally U.S. rate 3.9%

11. Gross Domestic Product by StateAverage Annual 2000 – 2010 All Industry 4.3% 4.6% 3.2% 4.0% 3.7% 3.0% 3.7% 4.9% 4.2% U.S. rate 3.9%

12. Gross Domestic Product by StateAverage Annual 2000 – 2010 Manufacturing 2.6% 3.7% 2.0% 2.3% 1.7% 1.6% 2.0% 3.8% 0.2% U.S. rate 2.0%

13. Gross Domestic Product by StateAverage Annual 2000 – 2010 Services 1.8% 2.7% 2.5% 1.5% 2.4% 1.9% 2.1% 1.4% 2.4% U.S. rate2.2%

14. Gross Domestic Product by StateAverage Annual 2000 – 2010 Personal Income and Employment 3.9% 4.0% 3.2% 4.0% 3.7% 3.5% 3.9% 4.9% 4.8% U.S. rate 3.9%

15. Missouri’s Strategic Initiative for Economic Growth • Advanced Manufacturing • Energy Solutions • Biosciences • Health Sciences and Services • Information Technology • Financial and Professional Services • Transportation and Logistics

17. "It's easier to be on the radar for investors when you're part of a critical mass," says John Fernandez, assistant secretary of commerce for economic development at the U.S. Economic Development Administration. • “Hubs also catch the eye of government”, says Dan Carol, senior fellow at the New Policy Institute think tank in Washington, D.C. “A concentration of small firms in the same field is more likely to be recognized on the municipal level, where funding programs and policies can be created to stimulate their growth.” AUGUST 22, 2011 Where the Action Is Across the country, new industry hubs are drawing entrepreneurs and investors—and offering start-ups support and safety in a turbulent economy

20. Missouri’s Entrepreneurial Opportunity

21. Missouri’s Entrepreneurial Opportunity

22. Kauffman Foundation Sketchbook "Three Things"

23. Mindset of Today’s Youth

24. Why Entrepreneurism Job creation Return on investment Local, committed ownership Community and philanthropic leadership Symbiotic relationship with large business

25. Entrepreneurial Ecosystems Nutrients • Taxes and regulation • Industry clusters • Investment policies • Capital access • Educational excellence

26. Entrepreneurial Ecosystems Healthy environment • Leveraging existing assets • Kauffman Foundation • Research institutions • Universities • SIFE • Investments in arts and recreation • Support for small and minority owned businesses

27. Entrepreneurial Ecosystems Nurturing • Infrastructure investments • Marketing and branding • Workforce development

28. Closing thoughts

29. Questions