Scottish business owners are being bogged down by jargon in core areas like HR and IT, a new study has found, risking delays in important decisions, and even financial loss.

After a UK-wide survey of more than 250 business owners, SME credit card specialist Capital on Tap found that more than four in 10 (41%) of Scottish business owners have been negatively impacted by confusing business jargon.

Almost three-quarters (73%) of Scots firms have missed out on important opportunities thanks to complex, easily misunderstood terms like ‘amortisation’, ‘burn rate’, and ‘revenue recognition’, with even widely used business language like ROI and dividends causing confusion.

Scottish business owners said that misunderstanding this jargon has had some severe consequences, like delaying important decisions (59%), poor communication with suppliers and partners (55%), reputational damage (50%), and errors in legal or contractual agreements (41%).

For those just starting, jargon could even impact the ability to secure funding, with a third (32%) of Scottish business owners saying misunderstood business language has affected their ability to gain investment.

Across the UK, acronyms rank as the most confusing business language, with over two-fifths (41%) unsure of the meaning of EBITDA (earnings before interest, taxes, depreciation, and amortisation), with even 44% of business owners with over a decade of experience struggling to identify the term.

Following closely behind are OPEX, or operating expenses, and CAPEX, capital expenditure, confusing 39% and 37% of business owners.

However, the figures show that business jargon has had less of an impact on the general UK business population than it has on those in Scotland.

Only half (52%) of UK-wide firms said that unclear business language has led to a missed opportunity, while 42% said it had resulted in financial loss – compared to 55% north of the border.

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“Understanding business terminology shouldn’t require a dictionary or a degree,” wrote Alex Miles, COO for Capital on Tap. 

“Yet for many business owners, confusing jargon continues to slow down decisions, complicate conversations, and create unnecessary barriers.”

To help cut through jargon and make clear decisions, Miles suggests that business owners should do things like ask for simpler language when faced with confusing terms, or try to clarify terms in meetings out loud with phrases like ‘Let’s make sure we’re all using that term the same way’ to help align everyone involved.

They should also prioritise understanding the jargon that impacts their business the most, and work with people who are clear in their communication, avoiding those who use jargon to sound impressive.