College boy embracing small European (8)
I believe the answer is:
estonian
'european' is the definition.
(person from Estonia)
'college boy embracing small' is the wordplay.
'college' becomes 'eton' (Eton College, English private school).
'boy' becomes 'ian' (man's name).
'embracing' is an insertion indicator.
'small' becomes 's' (abbreviation - e.g. clothes size).
'eton'+'ian'='etonian'
'etonian' placed around 's' is 'ESTONIAN'.
(Other definitions for estonian that I've seen before include "Eastern Europe" , "Northern European" , "Eastern European" , "European language" , "E. European" .)