Though no other user has permission to access your files, you and the several other users share the same resources. This means that if another website on the same server is receiving a large amount of traffic and using a lot of CPU resources, it’s possible that your site may run slower as a result.Those who are not having enough budget or wants to start with a lower investment this would probably the option for web hosting.
Share hosting is suitable for personal sites, small businesses, and even medium sized businesses if their hosting needs fit within the parameters of a small business.
The only real problem with shared hosting is if the web host oversells. Overselling means the host has put too many sites on one server. A good server usually has at least a gigabyte of memory, but if thousands of sites have to fight it out for memory, CPU cycles, and bandwidth, it means all the sites will be slow. Fortunately, any good host will prevent this from becoming a problem in the first place.