I have a 300e and need to reduce the size of the text and I am only able to reduce 10 percent which is not enough. Is something wrong with my machine or is that the extent of the size reduction?

I have the 350e. Are you using one of the built in fonts? I've only enlarged them so I have no actual experience but I think it might be because if you reduce it any further the stitching would be too tight and dense and not stitch out right.? Could you buy a smaller font?