Shared hosting is an inexpensive solution that looks great on the surface, and is offered readily to small and midsize businesses. Although a lot of new website owners are tempted to go with shared hosting, you eventually find out what so many others already know. Shared hosting can be a source of many problems.
- Your website could be blocked due to action of other users on the host;
- Your hosting may be less secure;
- You may experience more down time; and
- There is a higher risk of data loss.
What is Shared Hosting?
Shared Hosting is one of the many types of hosting in which your website shares one physical server and all its resources, mainly memory and bandwidth with multiple other websites. One server is set up and on it are tons of websites, including yours. Hundreds of websites could be on the same server, believe it or not.
There are lots of reasons why small businesses choose shared hosting, including its affordability and availability.

Problems With Shared Hosting
There is a long list of shared hosting issues a small business can run into when using this type of hosting:
- Limited resources are available. You have to share with lots of other websites. Your website could have limited functionality when for example, one of the websites gets a lot of traffic.
- The most common issue with shared hosting for businesses is how slow it makes your website feel.