Small rooms are never a problem if you know how to make them appear larger. There are lots of ways by which you can make them appear larger. One of the best ways is to manipulate with the paints. You should go for light and pale colors. They reflect a lot of light and thus make the area look brighter and bigger.
Then, you should have a lot of big windows in the room. This will make the room airy and a lot of light will come in. Having extended window sills is also a good idea. Another fine trick is to use mirrors on the opposite walls. If you place two big mirrors on the opposite walls, infinite images of the room will be created making the room appear endless. Your guests will have the first impression that they have entered a big room and by the time they catch the trick, they will surely be impressed by your creativity.