Being small is not a medical condition. It's a size description. Just like some adults are 5'2" and perfectly healthy, some babies are at the 5th or 10th percentile and perfectly healthy.
The difference between a healthy small baby and a baby whose small size warrants investigation comes down to three questions:
Is the growth consistent? A baby who has always tracked at the 8th percentile is following their own curve. That's healthy. A baby who was at the 50th and has fallen to the 8th has changed trajectory — and that change deserves evaluation.
Is the baby otherwise thriving? A small baby who is active, alert, feeding well, producing diapers, and meeting milestones is a healthy baby who happens to be small. A small baby who is lethargic, feeding poorly, or missing milestones has a different picture.
Does the growth pattern make genetic sense? If you and your partner are both petite, a baby at the 10th percentile is doing exactly what genetics predict. If you're both tall and your baby is at the 3rd percentile, that's a bigger mismatch worth discussing.