I would say no.
Technically, by the PHB, being in a space smaller than your occupied space (5 ft.) imposes a -4 penalty to attack and a -4 penalty to AC.
Being small sized, I'll say that in a space that is approximately your height high and wide, you can fight at half the normal squeezed penalty. This will stand unless for some reason it gets out of hand. If you want two to fight side by side in a three foot space, you'll start taking the normal squeezed penalties.
However, I'm going to add in some rules from the Underdark book, a light weapon takes only half the penalty to hit, a two-handed weapon is unusable in a squeezed space, and a piercing weapon used in a stabbing motion is considered one size smaller.