I've seen wooden embroidery hoops used to great effect. They come in different sizes, the smallest I've seen was about 40mm; 12 mm makes a very tiny frame, my wedding ring has a 16mm diameter!
I use to use embroidery hoops as frames for hand stitched items. It would also be a good way to frame machine embroidery items.
I should have said 12cm diameter. They used to be very popular in Australia a few years ago but seem to have vanished.