New data from Xero shows small businesses in New Zealand are flourishing.

It's found nearly 30 percent of the country's small businesses are turning over $500,000, double what we were seeing three years ago.

Xero's national managing director Victoria Crone says, while the likes of Auckland, Wellington and Christchurch have seen strong growth, other areas have also been flourishing.

"What we do see though through the numbers is that there's quite a bit of growth of new businesses starting up in the lower South Island, so it's not just about the main centres."