1 in 4 business owners have been negatively impacted by confusing jargon
Posted by: electime 4th August 2025
Capital on Tap surveyed over 250 UK business owners across a range of industries to better understand key business jargon and the impact this language has on their business.
- EBITDA or “earnings before interest, taxes, depreciation, and amortisation” has been named the most confusing business term, with 41 per cent of UK business owners stating they are unclear on its meaning
- Over half of business owners (52 per cent) feel that a lack of jargon knowledge has led them to miss out on crucial opportunities
- 42 per cent of business owners have missed out financially due to complex business language
Business jargon can be overwhelming, and misinterpreting key terms at critical moments could lead to costly mistakes for business owners and their companies. A recent survey conducted by Capital on Tap of 250 UK business owners revealed that over half (52 per cent) of respondents believe that misunderstanding the corporate terms has led to a missed business opportunity, and 29 per cent say it has contributed towards reputational damage.
The survey also reveals the most confusing business jargon and debunks the complex terms to make them actionable. Alex Miles, Chief Operating Officer at Capital on Tap, explains how to cut through the jargon and make confident decisions.
You can read the research in full here: https://www.capitalontap.com/en/blog/posts/debunking-business-jargon/
Despite running a company, for many business owners, complex phrases and terms can still feel confusing. These are the terms that business owners found the most confusing:
| Business Jargon | per cent of business owners that are not confident in its meaning |
| EBITDA | 41 |
| OPEX | 39 |
| CAPEX | 37 |
| Amortisation | 36 |
| Runway | 34 |
| Burn Rate | 32 |
| Revenue Recognition | 25 |
| AER | 21 |
| ROI | 18 |
| Dividends | 11 |
Acronyms rank as the most confusing business language, with over two-fifths (41 per cent) unsure of the meaning of EBITDA or “earnings before interest, taxes, depreciation, and amortisation”. Interestingly, even 44 per cent of business owners with over 10 years of experience struggled to identify the term.
Following closely behind are OPEX, or “operating expenses,” and CAPEX, meaning “capital expenditure,” confusing 39 per cent and 37 per cent of respondents.
Dividends appear to cause the least confusion among business owners, with just over one in ten (11 per cent) admitting to misunderstanding the terms
Over half of business owners (52 per cent) feel that a lack of jargon knowledge has led them to miss out on crucial opportunities, making missed business opportunities the biggest impact of confusing jargon on UK business owners.
| Impact on the business from misunderstanding business jargon | per cent of business owners experiencing this impact |
| Missed business opportunities | 52 |
| Poor communication with suppliers | 48 |
| Delay in making important decisions | 47 |
| Increased reliance on external advisors | 43 |
| Financial loss or incorrect budgeting | 42 |
| Errors in legal or contractual agreements | 40 |
| Onboarding delays with tools/services | 40 |
| Difficulty securing funding or investment | 39 |
| Reputational damage | 29 |
The second biggest impact of confusing jargon is listed as poor communication with suppliers, with almost half (48 per cent) of business owners claiming that unclear language affected this relationship.
The consequences extend to potential money difficulties, with over two-fifths (42 per cent) of business owners reporting financial loss or budgeting errors as a result of misunderstanding business terms.
Alex Miles, Chief Operating Officer at Capital on Tap, provides four tips to help cut through jargon and make clear decisions
1. Ask for simple language: “When faced with confusing terms, ask, ‘Can you explain that in simpler terms?’ or ‘What does that mean in practice?’”
2. Prioritise the jargon that impacts your business: “Start with terms that come up often in meetings, on invoices, or in reports, and build from there”
3. Clarify terms in meetings out loud: “Phrases like ‘Let’s make sure we’re all using that term the same way’ help align everyone and avoid costly misunderstandings later.”
4. Work with people who make things clear: “Avoid those who use jargon to sound impressive. Clear communication is far more valuable than complex language.”
To help business jargon empower business owners, Capital on Tap has created a debunking guide to help with clear definitions and real-world examples for the most confusing business terms, found here.
