INCENTIVES for emerging entrepreneurs to get their businesses up and running has been cut by three months and $57 million, down from the previous year-long grants.

Assistant Employment Minister Luke Hartsuyker announced the change to the New Enterprise Incentive Scheme allowance on Monday.

While people already receiving the allowance can complete their full 12 months, the Abbott government has cut it to nine months for new entrants.

The scheme pays about 6300 new entrepreneurs the equivalent of the Newstart Allowance to help while they establish their businesses.

But Mr Hartsuyker said given they get it for nine months, many were "generating sufficient income" to be commercially viable and some were also working part-time.

"This change is about balancing support for NEIS participants with the need to repair the budget mess left behind by the former government," he said.

The policy change will save the government an estimated $57.5 million over the next four years.