Many races in the galaxy are smaller than the galacitc norm. Examples include the LesserGoblin, Kobold, Gnome, Halfling, Snotling, TarnIdoun, and Quasta.
On the upside, SmallStature characters have an easier time finding cover and hiding, need less food, water, and air, and their gear weights less. On the downside, they find almost everything too high, furniture to big, beds too hard and there is almost always something blocking their line of sight.
Small creatures have a hard time using DragonGuns. Treat the concealability of all unmodified DragonGuns as one step greater than normal - so most pistols have a Concealability of Coat rather than Jacket to them. And so on. Weapons made especially for small characters retaintheir normal characteristics, but have a damage rating two points lower than normal.
Melee weapons are sized relative to the user, so there is no such problem there. In addition, there are certain melee tricks only small creatures learn. Anyone with SmallStature can use the Clinch melee weapon ability with all melee weapons except pole arms, as long as they are fighting larger opponents.