Kobolds are small. Strong, tenacious, but small. Almost everyone they encounter is bigger than them. Rather than feeling that everyone picks on them or looks down on them, they make use of every advantage that their dragon ancestors gave them. They're smart, fast, and sneaky. Though they rarely use swords (as it involves getting closer than they are comfortable with) the blades they forge for themselves tent to be straight and thin. Punch blades, kama's and tonfa style short swords (like Kroenen's from Hellboy) are the most common.
Their steel tends to be of better quality than that of the goblinkin, though inferior to that of elves or dwarves. As the ultimate opportunists kobolds are more likely than nearly any other race found using the weapons of those they've looted. Dragonkin weapons are especially prized, though they tend to be too large to actually be used effectively.