Small child needs me to hold it (4)
I believe the answer is:
mite
'small child' is the definition.
(I've seen this before)
'me to hold it' is the wordplay.
'to hold' is an insertion indicator.
'me' enclosing 'it' is 'MITE'.
'needs' acts as a link.
(Other definitions for mite that I've seen before include "Child; a small amount" , "Microscopic creature" , "The widow's small donation" , "Tiny creature found in food" , "The widow's small offering" .)