"As soon as I clapped eyes on the little fellow bobbing and puffing on the mat, I had my doubts. He looked more like a grocer than a burglar," says the dwarf, Gloin, in the first chapter of The Hobbit.

From the beginning the Dwarves are not too pleased with Gandalf's choice in a burglar, Bilbo. Bilbo seems to be a very flustered and "excitable little fellow." His outburst of fear and collapse was not assuring. But Gandalf insists he is "one of the best" though the Dwarves do not approve.

Despite the doubts of the Dwarves, Bilbo is swept off on the adventure as their "burglar." Bilbo soon comes across his chance to prove himself when the company comes across several trolls. But, trying too hard, he does not quite succeed.

It is not until Bilbo is lost in the tunnels of Orcs, finds the mysterious magic ring which makes him invisible, and escapes, surprising the Dwarves by "appearing" in front of them, and sneaking past Balin's watch that they begin to see from Gandalf's point of view. As Tolkien said, "Bilbo's reputation went up a very great deal with the Dwarves after this. If they had still doubted that he was really a first-class burglar, in spite of Gandalf's words, they doubted no longer."

But the Dwarves were not fully pleased with Bilbo until he goes down, alone, into Smaug's lair and brings back with him a great two-handled cup. "I've done it! This will show them. 'More like a grocer than a burglar' indeed! Well, we'll hear no more of that." Bilbo tells himself as he makes his way back up the tunnel and as Tolkien tells us, "Nor did he."

Information from J.R.R. Tolkien's The Hobbit