Small circle on chest? pink in color with flaking on the out side of it.

Hard to tell: without seeing however description can be consistent with Tinea Corporis or contact dermatitis. Seek treatment. If above doctors usually recommend topical antifungal or steroids

Probably fungal: Try lamisil (terbinafine) antifungal cream on it twice daily for 2-4 weeks for ringworm, which is a fungal infection. May try clotrimazole(lotrimin) over the counter instead, which is cheaper, but usually have to use it longer to see results. If no improvement in a week, then see your physician for further recommendations or see dr sooner. It is difficult to diagnose skin conditions without seeing them.

Ring worm?: Flaking on the outside of the round lesion is a key finding. If the edges of the circle are some what raised as well, it will be more indicative. Try sending us a picture if you can for confirmation:) Use OTC Lotrinin in the meantime.