I'm running a binary logistic model that includes categorical variables.

One of my main covariates has 8 categories and some of the sample sizes within categories are small (e.g. 25 people) but this is in a total sample of 8,537 people. However when you restrict it down to the variable of interest this leaves only 1 person (i.e. 1 person out of 25)

Does the small sample of a category within a categorical variable create any problems? If so what is a good cut-off point for groups within categorical variables?

Any suggestions would be much appreciated. Thank you

Limee