New research from payments company PayPal reveals that 44% of Irish SME's online sales come from outside Ireland.
The survey, commissioned by PayPal among SME owners surveyed in Ireland whose businesses sell online, found that 51% are confident about their growth prospects for this year.
The SMEs said this confidence comes on the back of the rise of social commerce, with 78% reporting that they use social media channels for sales.
56% of business owners surveyed now feel that social media commerce is more effective than traditional ecommerce platforms for driving sales, while 21% expect it to be the main driver of business growth in the next 12 months, the survey also shows.
PayPal said that Instagram shopping (52%), YouTube shopping (52%), Facebook shops (51%) and TikTok shops (34%) are the leading social platforms for social commerce sales among Irish SMEs surveyed.
Irish SMEs are significant adopters of AI technology, with 78% business owners surveyed currently using AI in either business or customer processes, today's survey found.
Driving innovation (62%), reducing finance administration (59%) and driving revenue growth (57%) are cited as the greatest benefits to business operations, PayPay said.
Meanwhile, digital payments continue to support SMEs here, with mobile payment apps accounting for 19% of transactions on average. PayPal said that four in ten Irish business owners offer mobile payment apps to customers, while digital wallets are also a popular form of payment among customers (36%).
Jonas Breding, General Manager, PayPal Northern Europe, said that Irish SME owners are operating in fast-moving and competitive environments.
"From AI adoption and the rise of social commerce to the introduction of new payment methods, business owners are continuously having to evolve to meet changing consumer expectations," he noted.
But he added that the scale of this change also brings real opportunities for Irish businesses.
"On average, SMEs who sell online are generating 44% of their sale cross-border. By leveraging digital channels, social commerce and ecommerce technology, we can see that Irish SMEs are well positioned to reach customers across the world," he said.
"The businesses that will thrive are those that continue to invest in the right tools, removing friction from the customer journey and fully embracing international sales opportunities," he added.
