INNOVATIVE ENTREPRENEURSHIP IN THE FOOTWEAR INDUSTRY: IMPLEMENTATION OF CIRCULAR ECONOMY PRINCIPLES IN STARTUP PROJECTS USING RECYCLED MATERIALS

This article explores the development of innovative entrepreneurship in the footwear industry through the integration of circular economy principles and the use of recycled materials in startup projects. In the context of global climate change, resource depletion, and increasing demand for sustainable consumption, there is a growing need to transition traditional industries to environmentally responsible and resource-efficient business models. The footwear industry, which has historically been highly resource- and energy-intensive, is now actively undergoing transformation, with a particular emphasis on waste reduction, materials reuse, and the development of closedloop production systems. Special attention is paid to startups as agile, innovation-oriented market players capable of responding quickly to changing conditions and consumer demands. These ventures often integrate circularity and sustainability into their core business models, ensuring not only economic viability but also environmental and social responsibility. The article provides a comprehensive review of recent research on material reuse, life cycle analysis, and the application of upcycling technologies in the footwear sector. Examples such as the upcycling of polyester waste into thermal insulation materials, or the use of coconut fibers, coffee grounds, and mycelium-based leather substitutes, highlight the innovation potential in this field. The study also examines the structure and growth of the global eco-footwear market, projecting continued expansion over the coming years, and analyzes the factors influencing the adoption of circular approaches – such as public policy, investment access, digital tools, and consumer awareness. Ukrainian and international case studies are discussed, including local craft-based eco-footwear brands and startups like Hanftek, which emphasizes full-cycle, domestic production using hemp fibers. Key management models are proposed for supporting and scaling circular footwear startups, including Lean Startup, Design Thinking, and Impact Modelling. These approaches facilitate efficient product development, customer-centric design, and comprehensive evaluation of environmental impact. The article also identifies institutional mechanisms-such as grant programs, accelerators, and policy incentives – that are essential for fostering a supportive ecosystem for circular innovation. Ultimately, the circular economy is presented not only as an ecological imperative but also as a strategic opportunity for the renewal of the footwear industry through innovative, resilient, and sustainable entrepreneurship.