Hi Didsba. A square rug will allow you to have a larger "definition" for the space, helping it to feel larger than if you went with a round rug. You can place furniture in the room without having furniture pieces half on and half off the rug. In small spaces, you may not have much room for furniture like side tables for table lamps. Even if you have side tables, you may need the surface space for functioning in the room; so, consider wall-mounted lamps. I say "lamp" because it can be a little larger than some wall sconces are, e.g., 7.5" across the shade and the whole thing (shade and arched "arm") might be 10" high. House of Troy had some a while back when I was looking, but I don't know your aesthetic or what the room's style will be, so just look around online. I'd suggest the wall-mounted lamps over going with a floor lamp because anything you can keep off the floor will help the room feel larger. If it works to have any table surfaces wall mounted, this can help it feel larger as well. Avoid skirting on upholstered chairs and instead go with furniture legs that allow you to view under the furniture. This will help the small space feel more open/larger. Definitely use properly scaled furniture, but DON'T go with extra small pieces of furniture. That will only underscore the smallness of the room. Try to have one or two pieces that anchor the room be a sort-of generous sized, while not overdoing the size. By having some "larger" pieces (relatively large, that is), you can give the feeling that it's not so very tiny-tiny, but more of a normal sized room. In choosing accessories, such as--say--a bowl, make many of them CLEAR. This would involved glass, Lucite, crystal, etc. so that the eye is not stopped, and the visual flow continues. Best wishes for a beautiful outcome!
Q