I'm not sure if it's supposed to look like that on purpose, but, the white edges make the picture look too much like an untidy cut-out. But if it really is supposed to be that way, then it's a clever design.
I agree with Pheonix_Wright on this. Maybe next time use some kind of magic wand tool (it's actually called a magic wand) to delete those edges? Or even you can use an eraser, than afterwards mess with the layers to get your desired result. Besides that, I'd say this is pretty cute. ^^