Smaller stage is a great idea. Think a good template that I’ve seen work incredibly well is Folk Festival up in Newport, RI with the three levels of stages (Harbor, Quad, and Fort) with two smaller soap box style stages for local artists/open mics. Recently (two years ago?) Illiterate Light has been running a bicycle/solar powered stage that is really community and family centric with local artists. Also they have plenty of great local art/jewelry/clothing vendors everywhere and non-profits for volunteer days throughout the community. On top of a festival and historical museum that has a few sets too. Gushing rant about Folk Fest over.