The smallest guitar I make is the 0-12 fret. Modeled after the Martin 0-28 from the early part of the last century, it is light, small, and potent. This is the guitar for the player whose shoulders ache from playing a D, who want to sit on the couch and relax, but still be able to get a great sound without the pain of bad ergonomics. Make no mistake, this is a small box but with a great voice. Depending on material choice it can be a blues guitar, a jazz guitar, or a killer finger style platform. I use this body style for my Travel Guitar because it is so powerful for its size.
The 0-12 is a serious instrument with no loss of tone or power as a result of the smaller footprint. You will not find it wanting in the least.