The dynamics of perception and trust in decision-making among MSMEs: Insights from Islamic banking financing

Abstract

This study aims to investigate the impact of perception and trust on MSMEs' decisions
regarding Islamic bank financing. Data were collected from 87 MSMEs in Ngaliyan
District, Semarang, through surveys and questionnaires. Using a quantitative
approach, the data were analyzed with IBM SPSS Statistics Version 24, employing
multiple regression analysis. Surprisingly, the results show that neither perception nor
trust significantly influences MSME entrepreneurs' decisions. Instead, factors like
convenience and efficiency play a more critical role. The study emphasizes the need to
streamline processes and improve accessibility to better serve MSMEs.