Little Sarah working in hairdressers (5)
I believe the answer is:
salon
'hairdressers' is the definition.
(I've seen this before)
'little sarah working' is the wordplay.
'little' means to remove the last letter (the word is not quite complete).
'sarah' becomes 'sall' (Sally is a common pet form of Sarah).
'working' becomes 'on'.
'sall' with its final letter removed is 'sal'.
'sal'+'on'='SALON'
'in' is the link.
(Other definitions for salon that I've seen before include "Room where beautician works" , "Elegant room for receiving guests" , "Elegant room is great house for entertaining" , "Establishment of, say, beauty specialist" , "Large reception room" .)