Shared vs. Virtual Private Server vs. Dedicated Web Hosting
Most Web hosting providers that cater to small businesses provide shared Web hosting, where many Web sites are housed on the same server. The advantage of shared Web hosting is that it's typically inexpensive (less than $10/month), because the provider can spread out the cost of maintaining the server among many customers. While websites are kept separate, there can, however, be problems with availability/uptime with this option.
For small businesses with relatively light traffic and/or sales (i.e., not an ecommerce business), shared Web hosting is fine. However, if you run an ecommerce business, you may want to consider using a provider that offers a VPS (Virtual Private Server, also referred to as a Virtual Dedicated Server) solution, where your site sits on its own virtual server and will not be affected by other customers.
Another option is dedicated Web hosting, where you lease a whole server for your website(s). While this option is more expensive than shared and VPS Web hosting, if you have a high-traffic small business ecommerce site that is doing thousands of dollars of business each month, and need fast, ecommerce Web hosting, this may be your best bet.
