Handicrafts from the Santa Bárbara [1] region are best purchased in surrounding villages [2], although there is a shop or two in town. Roadside stands sell hammocks and straw products including hats and baskets a few kilometers north of Santa Bárbara.
Links:
[1] http://www.moon.com/destinations/honduras/central-honduras/santa-barbara-and-vicinity/santa-barbara
[2] http://www.moon.com/destinations/honduras/central-honduras/santa-barbara-and-vicinity/villages-near-santa-barbara