Look for him.
As soon as you can, if you are able, turn off the compass.
So you can have fun exploring the world instead of staring at your magic GPS quest objective locator the whole time. It really opens up the world around you. Since disabling the compass all together, I've never looked back.
Because it's more confusing than helping. You're looking for Sven, you know that he is somewhere in the village; simply go everywhere, talk to everyone, and you'll eventually find him.
Yeah. If you want to really be an adventurer and make discoveries yourself then you should disable it. The magic GPS tourist guide compass ruins all the excitement by telling you everything including where enemies are.
When the game was released I first tried playing with the Compass, but it just made the game boring. I just followed arrows with zero brain use and didn't even have to spot enemies myself. I didn't like the game at all before i disabled the Compass.