This is a really good question. I did some freelancing as a writer, mostly for online publications. You are right that the market is limited but it also very competitive. The good thing is that you can set your own schedule, but the bad thing is that you will not make that much. So, in many cases freelance writers supplement their income with other jobs, whether teaching at a school or college, or doing something that is not so strictly writing related such as working in recruiting or advertising. I think a lot of writers find that you need some time to be able to establish yourself and support yourself entirely through writing and not other jobs. Some options that are close to writing involve working at a literary agency, where you are reading other people's scripts, or trying to be an assistant/intern to a successful writer or agency. If you are not interested in actual reporting for local media and news writing, you may be able to pitch some feature stories to newspapers. Of course, that would not be fiction writing and it is not everyone's cup of tea. There are also charitable organizations that need good writers to tell their story or even to organize contests that involve writing or teach workshops.
You can also write a book and try to work with someone to market it. If you have great ideas about creative writing, and have time to sit down and pursue them, that may be your path to success, but that would not be a 9 to 5 job. It will likely swallow up all of your time and will take a while to reap any rewards.
I earned a MFA in fiction writing, and with that degree I have been able to obtain teaching jobs in over 20 colleges. So, that path is a possibility. Also, there are more and more writing jobs online. Start your own blog online, if you have not already done so. The objective then is to get traffic and eyes on your blog’s content, so create links to others’ blogs. Lastly, look for internships at literary magazines, theaters, or TV stations, even if it is a non paying position to make connections.