A web hosting environment in which more than one website can be hosted on a single web server is called as shared hosting. These hosting accounts share the server resources like CPU, memory, and disk space. In simple language, multiple hosting accounts are created on a single server and those are assigned to individual websites or domain names. Startup or small business websites receive moderate traffic and so minimal amount of server resources are required to host such websites. For example, you travel by bus, where you need to share your seat with others. You choose this option as it is affordable as compared to taxi or your own car. Therefore, it is the most affordable form of hosting for small and startup businesses.

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