Small rooms punish bad lighting decisions more than large ones. There's less room to hide a fixture that's too bulky, too bright, or simply in the way.
The instinct is often to go smaller across the board, but that's not quite right either. A tiny lamp in a small room can look like an afterthought. What tends to work better is choosing pieces with a slim profile, ones that take up little visual space even if their footprint isn't minuscule.
Wall lights earn their keep here. They free up surface space entirely and can wash a wall with light in a way that makes a room feel taller than it is.
Small spaces don't need less lighting. They need lighting that's been chosen more carefully.