Building on Missouri’s Entrepreneurial

Ecosystems2011 Governors Conference on

Economic Development

Peter J. deSilva President and COO

UMB Financial CorporationChairman and CEO

UMB Bank

Agenda

Condition of the global, national and state economy

Building Missouri’s future economy

The importance of entrepreneurial ecosystems

Economic Uncertainty

Financial Capital

Intellectual Capital

Entrepreneurial Capital

FINANCIALENTREPRENEURIA

LINTELLECTUAL

1998 World GDP30%: U.S. share22%: Emerging markets share

2009 World GDP25%: U.S. share

32%: Emerging markets share

U.S. GDP 1998 – 2009Total Growth Rate

GDP All Segments GDP Services GDP Goods GDP Government0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

66.70% 65.90%

50.90%

112.60%

GDP Has Grown by More Than $5 Trillion

Adding the equivalent of a China to U.S.

GDP

U.S. Net New JobsCreated in the Last Ten Years

Yet, no net job growth in the past

ten years

U.S. rate 3.9%

Missouri is Home to 11 Fortune 500 Companies, Ranking Us 16th Nationally

Gross Domestic Product by StateAverage Annual 2000 – 2010

All Industry

4.6%

4.0%

4.9%

4.3%3.2%

4.2%

3.7%

3.7%

3.0%

U.S. rate 3.9%

Gross Domestic Product by StateAverage Annual 2000 – 2010

Manufacturing

3.7%

2.3%

3.8%

2.6%2.0%

0.2%

1.7%

2.0%

1.6%

U.S. rate 2.0%

Gross Domestic Product by StateAverage Annual 2000 – 2010

Services

U.S. rate 2.2%

2.7%

1.9%

1.4%

1.8%2.5%

2.4%

2.4%

2.1%

1.5%

Gross Domestic Product by StateAverage Annual 2000 – 2010

Personal Income and Employment

4.0%

4.0%

4.9%

3.9%3.2%

4.8%

3.7%

3.9%

3.5%

U.S. rate 3.9%

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

http://vimeo.com/22923064

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

"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.”

Missouri’s Entrepreneurial Opportunity

Missouri’s Entrepreneurial Opportunity

Kauffman Foundation Sketchbook"Three Things"

Mindset of Today’s Youth

Why Entrepreneurism

Job creation Return on investment Local, committed ownership Community and philanthropic

leadership Symbiotic relationship with large

business

Entrepreneurial Ecosystems

NUTRIENTS

Taxes and regulation

Industry clusters

Investment policies

Capital access

Educational excellence

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

Entrepreneurial Ecosystems

NURTURING

Infrastructure investments

Marketing and branding

Workforce development

Closing thoughts

Questions