1. © 2014 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. Economic Growth through Small Business Innovation Barbara Freeman CEO and Founder SME Global Group

2. © 2014 Fair Isaac Corporation. Confidential. Most Will Come from High-Growth SMEs in Emerging Markets 600 Million New Jobs Needed Over the Next 20 Years Source: WDR 2013 team based on data from ILO and World Development Indicators. Note: The estimations are based on projected population growth assuming constant employment rates. Employment Growth Needed to Cope with Population Growth South Asia East Asia and the Pacific Sub-Saharan Africa Latin America and the Caribbean Middle East and North Africa Europe and Central Asia South Asia East Asia and the Pacific Latin America and the Caribbean Middle East and North Africa Europe and Central Asia Sub-Saharan Africa Million jobs per year 0%1.0%2.0%3.0%051015 Annual change in employment (percent) 2

3. © 2014 Fair Isaac Corporation. Confidential. Growth Originates from Innovative SMEs Scale Targeting top 1% High-Growth SMEs will deliver the most impact 300K SMEs, 15–20 years, >50 Million Jobs… 10% HG SMEs 300,000 Large 3 Million SMEs 100 Million Micros 500 Million “Large” Jobs 850 Million SME Jobs 150 Million Micro Jobs Source: Enterprise Survey analysis on SMEs with between 10 and 250 employees. Percent 100 80 60 40 20 0 Share of Jobs Share of Growth Not HGS Share of Job and Job Creation 3

4. © 2014 Fair Isaac Corporation. Confidential. ► Not micro-enterprise ► Small end of SME range ► Formal business ► In business for at least 3 years ► 20 or fewer employees ► Average annualized growth of at least 20% ► Desire to grow: This is not a lifestyle business! ► Desire to learn: This is not for the incurious! High-Growth SME Run by High-Potential Entrepreneurs © 2014 Fair Isaac Corporation. Confidential. 4

5. People Are Central Entrepreneurs Need Access to Finance and Advisory Services National/Regional Environment Industry/SectorIndustry/Sector FirmFirm Entrepreneur and Entrepreneurial Team 5

6. © 2014 Fair Isaac Corporation. Confidential. Educational Development Is Key to Economic Growth People in High-Growth SMEs Innovate “The main forces pushing toward reduction in inequalities are the diffusion of knowledge and investment in training and skills […] Knowledge and skill diffusion is the key to overall productivity growth, as well as the reduction of inequality, both within and between countries.” Thomas Piketty, 2014 6

7. © 2014 Fair Isaac Corporation. Confidential. DARE Adaptive System Services To Be Built* Existing Cloud Services *Existing and locally based. D A R E Diagnostic, Analytics and Recommendations Engine 7

8. © 2014 Fair Isaac Corporation. Confidential. DARE Adaptive System DARE Global Database D A R E Diagnostic, Analytics and Recommendations Engine SME Provided Data (example) DemographicsPsychometricsBusiness (3 year) AgeGritSales EducationGrowth MindsetProfits FamilyIntegrityEquity ResidentCuriosityDebt TransportProactiveB/S PhoneSelf EfficacyI/S IQ ImagesEmployees Digit SpanWomen SIC Code Yrs. Ops. Services To Be Built* Existing Cloud Services *Existing and locally based. 8

9. © 2014 Fair Isaac Corporation. Confidential. DARE Adaptive System DARE Global Database Potentially Purchased Services Credit Score Psychometrics Fraud Checking Business Profile Social Media Tracking Business Rating D A R E Diagnostic, Analytics and Recommendations Engine Services To Be Built* Existing Cloud Services SME Provided Data (example) DemographicsPsychometricsBusiness (3 year) AgeGritSales EducationGrowth MindsetProfits FamilyIntegrityEquity ResidentCuriosityDebt TransportProactiveB/S PhoneSelf EfficacyI/S IQ ImagesEmployees Digit SpanWomen SIC Code Yrs. Ops. *Existing and locally based. 9

10. © 2014 Fair Isaac Corporation. Confidential. DARE Adaptive System DARE Global Database DARE to INVEST Selection Plan D A R E Diagnostic, Analytics and Recommendations Engine Potentially Purchased Services DemographicsPsychometrics Credit Score Psychometrics Fraud Checking Business Profile Social Media Tracking Business Rating Services To Be Built* Existing Cloud Services SME Provided Data (example) DemographicsPsychometricsBusiness (3 year) AgeGritSales EducationGrowth MindsetProfits FamilyIntegrityEquity ResidentCuriosityDebt TransportProactiveB/S PhoneSelf EfficacyI/S IQ ImagesEmployees Digit SpanWomen SIC Code Yrs. Ops. *Existing and locally based. 10

11. © 2014 Fair Isaac Corporation. Confidential. DARE Adaptive System DARE Global Database Training-Monitoring-Mentoring Results Performance Feedback Investment Recommendation DARE to INVEST Selection Plan D A R E Diagnostic, Analytics and Recommendations Engine Potentially Purchased Services Credit Score Psychometrics Fraud Checking Business Profile Social Media Tracking Business Rating Services To Be Built* Existing Cloud Services SME Provided Data (example) DemographicsPsychometricsBusiness (3 year) AgeGritSales EducationGrowth MindsetProfits FamilyIntegrityEquity ResidentCuriosityDebt TransportProactiveB/S PhoneSelf EfficacyI/S IQ ImagesEmployees Digit SpanWomen SIC Code Yrs. Ops. *Existing and locally based. 11

12. © 2014 Fair Isaac Corporation. Confidential. DARE Adaptive System DARE Global Database Training-Monitoring-Mentoring Results Performance Feedback Investment Recommendation DARE to LEARN Education Plan DARE to INVEST Selection Plan D A R E Diagnostic, Analytics and Recommendations Engine Potentially Purchased Services Credit Score Psychometrics Fraud Checking Business Profile Social Media Tracking Business Rating *Example of existing and locally based. Learning Systems IFC Biz Edge/GBSN* Content OER Mentor System Learning Networks* Services To Be Built* Existing Cloud Services SME Provided Data (example) DemographicsPsychometricsBusiness (3 year) AgeGritSales EducationGrowth MindsetProfits FamilyIntegrityEquity ResidentCuriosityDebt TransportProactiveB/S PhoneSelf EfficacyI/S IQ ImagesEmployees Digit SpanWomen SIC Code Yrs. Ops. 12

13. © 2014 Fair Isaac Corporation. Confidential. Learning and Development = Financial Inclusion DARE to Invest High Credit Score Low Credit Score Low Potential Entrepreneur High Potential Entrepreneur Poor Business Prospect Good Business Prospect Business Risk Too High Default Risk Too High Entrepreneurial Potential Too Low T(1) Initial Target Market Psychometric Cutoff Credit Score Cutoff Business Analytics Cutoff T(1) 13

14. © 2014 Fair Isaac Corporation. Confidential. Learning and Development = Financial Inclusion DARE to Invest High Credit Score Low Credit Score Low Potential Entrepreneur High Potential Entrepreneur Poor Business Prospect Good Business Prospect Business Risk Too High Default Risk Too High Entrepreneurial Potential Too Low T(n)T(1) T(n) Initial Target Market Psychometric Cutoff Credit Score Cutoff Business Analytics Cutoff T(1) 14

15. © 2014 Fair Isaac Corporation. Confidential. Learning and Development = Financial Inclusion DARE to Invest High Credit Score Low Credit Score Low Potential Entrepreneur High Potential Entrepreneur Poor Business Prospect Good Business Prospect Business Risk Too High Default Risk Too High Entrepreneurial Potential Too Low T(n)T(1) T(n) Initial Target Market After Learning and Development Psychometric Cutoff Credit Score Cutoff Business Analytics Cutoff T(1) T(n) 15

16. © 2014 Fair Isaac Corporation. Confidential. Personalized and Relevant Training and Mentoring DARE to Learn Open Educational Resources for Training Vetted Content, Podcasts, Etc. SME Entrepreneur Mobile Phones, Devices, Computers, etc. Knowledge Base Individual Entrepreneur Data- Financial, Education Learning Maps and Ontology Entrepreneurial Capabilities 16

17. © 2014 Fair Isaac Corporation. Confidential. Personalized and Relevant Training and Mentoring DARE to Learn Open Educational Resources for Training Vetted Content, Podcasts, Etc. SME EntrepreneurSME Mentor Mobile Phones, Devices, Computers, etc. In-Person (local networks) Technology (On-Demand) Knowledge Base Individual Entrepreneur Data- Financial, Education Learning Maps and Ontology Entrepreneurial Capabilities 17

18. © 2014 Fair Isaac Corporation. Confidential. Personalized and Relevant Training and Mentoring DARE to Learn Open Educational Resources for Training Vetted Content, Podcasts, Etc. SME EntrepreneurSME Mentor Mobile Phones, Devices, Computers, etc. Mentor Tool Schedule Connect Record Evaluate In-Person (local networks) Technology (On-Demand) Knowledge Base Individual Entrepreneur Data- Financial, Education Learning Maps and Ontology Entrepreneurial Capabilities 18

19. © 2014 Fair Isaac Corporation. Confidential. Personalized and Relevant Training and Mentoring DARE to Learn Open Educational Resources for Training Vetted Content, Podcasts, Etc. SME EntrepreneurSME Mentor Mobile Phones, Devices, Computers, etc. Machine Learning Predictive Analytics Mentor Tool Schedule Connect Record Evaluate In-Person (Local Networks) Technology (On-Demand) Knowledge Base Individual Entrepreneur Data- Financial, Education Semantic Map Entrepreneurial Capabilities 19

20. © 2014 Fair Isaac Corporation. Confidential. Multidimensional Capabilities Development Training and Mentoring Address Different Needs ► Self-Efficacy ► Persistence ► Inspirational ► Communication ► Collaboration ► Networking 21 st Century—Enabling Dispositional—Empowering ► Risk Propensity ► Flexibility ► Openness ► Growth Mindset ► Inquisitiveness ► Proactive ► Innovation and Creativity ► Problem-Solving ► Awareness of Best Practices ► Embrace Diversity ► Critical Thinking ► Connects Ideas ► Financial Literacy ► Management Skills ► Leadership Skills Technical—Operational ► Operations and Value Chain ► Internationalizing and Exporting ► Data-Driven Decision-Making ► Human Resources ► Marketing and Sales ► Governance 20

21. © 2014 Fair Isaac Corporation. Confidential. Vetted, Modularized, and Targeted Resources Teaching Technical Skills through Training 21

22. © 2014 Fair Isaac Corporation. Confidential. Blending 24/7 Digital Mentoring with Local Networks 22

23. © 2014 Fair Isaac Corporation. Confidential. ► Cyclical feedback from demographic, psychometric, and business-related data Correlate with learning data: ► Type of content (financial literacy, trade finance, etc.) ► Mastery of content (performance on quizzes) ► Sequencing of content (what did they take before and after given course) ► Time on task (which sections of course visited) ► Type of media used (video, visualization, text, interactive simulation, etc.) ► How it was accessed (phone, smart phone, tablet, computer) ► Integrated business and learning analytics and performance data enables the optimization of recommendations at the: ► Firm level: To individual entrepreneurial teams based on their activities ► Systems level: Based on patterns of entrepreneurial behaviors across firms ► Understand relationships between learning and job creation Cyclical Feedback Generates New Data Outputs 23

24. © 2014 Fair Isaac Corporation. Confidential. DARE Adaptive System DARE Global Database Training-Monitoring-Mentoring Results Performance Feedback Investment Recommendation DARE to LEARN Education Plan DARE to INVEST Selection Plan D A R E Diagnostic, Analytics and Recommendations Engine Potentially Purchased Services Credit Score Psychometrics Fraud Checking Business Profile Social Media Tracking Business Rating *Existing and locally based. Learning Systems IFC Biz Edge/GBSN* Content OER Mentor System Learning Networks* Services To Be Built* Existing Cloud Services SME Provided Data (example) DemographicsPsychometricsBusiness (3 year) AgeGritSales EducationGrowth MindsetProfits FamilyIntegrityEquity ResidentCuriosityDebt TransportProactiveB/S PhoneSelf EfficacyI/S IQ ImagesEmployees Digit SpanWomen SIC Code Yrs. Ops. 24

25. © 2014 Fair Isaac Corporation. Confidential. Productive Growth Originates from SMEs Who DARE Still Everyone Needs Support! “Only those who dare to fail greatly can ever achieve greatly.” Robert Kennedy 25

26. © 2014 Fair Isaac Corporation. Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation’s express consent. Barbara Freeman CEO and Founder SME Global Group Thank You!

27. © 2014 Fair Isaac Corporation. Confidential. Please rate this session online! Barbara Freeman barbarafreeman@smeglobal.net 27