Inventing entrepreneurs. (Matt Hession's technique for personnel management)

Matt Hession, president of Key Nursing Corp., has experimented with developing entrepreneurs. In the past 5 years, he has helped 9 people find temporary medical staffing businesses like Key Nursing. Hession gives them 49% of a separate company, puts in about $1,000 in capital at 2% above prime, loans them working capital, and steadily funnels in money until the businesses can obtain their own lines of credit. One company, Analytical Medical Enterprises Inc. (AME) reached the 75th position on 1989's Inc. 500. Although some of the affiliates have failed, Hession's $1,500 equity investment in AME has yielded him about $240,000. Principles Hession has found important in developing his entrepreneurs include: 1. Find hard-working people with management experience and who have shown responsibility with money. 2. Give the entrepreneurs equity and operating control. 3. Support the affiliates without pushing them over the edge. 4. Commit to the entrepreneurs. 5. Agree to sell out shares in successful affiliates.