The theoretical foundations of craft production are studied; the essence and features of craft production, factors that impact its development in Ukraine, and the importance of the project approach in the management of craft enterprises are analyzed. In particular, it was established that craft production is a unique type of small business, based on the creation of high-quality, authentic products, using manual labor, traditional methods, and innovative technologies. It differs from mass production in limited volumes, an individual approach, and special value for consumers. It is proven that the development of craft business in Ukraine is a complex and multifaceted process, which is impacted by several factors, in particular: economic, legal, socio-cultural, technological, logistical, and environmental. It is substantiated that the project approach in the management of craft enterprises is an important tool for ensuring efficiency, flexibility, and adaptability in conditions of high competition and market instability. This approach allows: to clearly define the goals and development strategy of the enterprise; to optimize the use of resources; to reduce risks and ensure control over the implementation of tasks; to attract investments and expand opportunities for scaling the business. An algorithm for starting a craft business based on the application of a project approach is proposed. The development of craft production in Ukraine has significant potential, but requires comprehensive support from the state, in particular: simplifying the regulatory framework and certification procedures; creating special financing programs and grants for craft producers; promoting the development of infrastructure and logistics; supporting marketing initiatives and popularizing craft products. The article contains a formulation of the problem, a review of literary sources on the subject of the study, results of the investigation, and conclusions.