Bilbo Baggins is a Hobbit, a race of people that are smaller in stature than even Dwarves, with a fondness for food and comfort, and not well known outside their home territory. Bilbo was disturbed from his comfortable existence by Gandalf the Grey Wizard and was recruited, somewhat reluctantly, into a dangerous adventure to rob a Dragon (Smaug) alongside a troupe of Dwarves lead by Thorin. Later on he became an accidental Ringbearer of the powerful One Ring. This lead to more problems for him and his kin (Frodo) in The Lord of the Rings books.
This sculpt is part of a duo (with Gandalf) where they first encounter each other, in the Shire.