Two dots, for example, representing small island (8)
I believe the answer is:
colonsay
'small island' is the definition.
'colonsay' can be an answer for 'island' (I've seen this before). I'm not sure about the 'small' bit.
'two dots for example' is the wordplay.
'two dots' becomes 'colon' (I can't explain this - if you can you should believe this answer much more).
'for example' becomes 'say' ('say' can be used to introduce an example).
'colon'+'say'='COLONSAY'
'representing' acts as a link.
Can you help me to learn more?
(Other definitions for colonsay that I've seen before include "Scottish island" , "Hebridean island" .)