Re: >only affects small business?
Assuming you're VAT registered, then it all depends on who your customers are, if you are a B2B supplier, then your customers are likely VAT registered anyway, and hence the change only makes a cashflow difference to them, as they're going to claim the VAT they've paid back anyway, thus not a big deal - no change to your profit margins as you claim back the increased VAT from your suppliers etc.
For a B2C supplier, or supply very small businesses that aren't VAT registered themselves then it's more tricky as at that point your customers likely care about the 'including VAT' price rather than the excluding, so your goods will have just become ~2.1% more expensive to them, unless you swallow the rise in which case your profit margin decreases obviously.
If you're not VAT registered at all then your costs will likely have increased ~2.1%, so you have to decide whether to pass that on etc, and at that point it can have an effect on your profit margin. Note that most fixed costs like energy bills etc are either not VATable at all, or charged at the reduced rate which is unchanged at 5%, so there is little change there.