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If you want online options, you can always try Etsy. You aren't necessarily supporting local vendors (though I'm sure you can find some on there) but you are supporting small businesses. I went on there in search of a 'my first house' ornament after seeing the generic plastic ones for $15-20 in Hallmark, and got one with my house hand painted on it for $12.50!
Off Strickland Road, between Lead Mine Road and Six Forks Road is a store called The Shops of Baileywick. It has lots of handmade items. It is one of those stores that has about 40 different booths/vendors.
Ten Thousand Villages!!! In Cameron Village. Hand Made AND Fair Trade!
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