Not all rooms can accommodate a full-sized three seat sofa, but most have enough space for a two-seater or love seat. Loveseats being relatively small, you will find that you have more placement options with them than you would have with a full sized couch. If extra seating is needed, an extra armchair is always an option. It all depends on the dimensions of the room the sofa will be placed in.
A beige model – very basic but I like it:
Loveseat for small spaces pictured: Regent Loveseat by Office Star, brownstone
Small spaces are always a challenge to furnish, but the job is made somewhat easier by the fact that furniture makers take into account the large number of people that live in small apartments. This means there is a wider array of choices for you than there was years ago. And this applies to all sorts of furniture, including desks, TV stands and consoles, cabinets and tables. Once you find a sofa that will fit in the room, you need to find one that is comfortable, and whose color will fit in your decor.