
There are diferent forms of dwarfism, the least health problems are with Achondroplastic Dwarfism (shot limbs) which in fact has become a breed trait in many breeds, such as Bulldogs, Bassets, Dachshunds, etc. On the other hand the type that is often found in GSD and Malamutes I beleive is one of the serious lethal forms, and with this there are various health issues and a short lifespan.
If the pup is likely suffering the latter then I would have it put to sleep. If it is just the limb affecting type then the pup should go to a good home on the understanding it is not bred from of course.