Think of hosting as like keeping all your website data on a computer, that would be accessible 24/7 by others. And for that, the server providers charge you money. These 'computers' are not normal desktop computers, rather they are servers dedicated for these tasks.
Most common type of hosting is shared hosting, and as the name says, you share a server with others. Meaning, all the websites would use the same storage, bandwidth & other server recourses.
Shared hosting has ups & downs, the most appealing thing about it, is its price. Shared hosting is the cheapest of all hosting types, simple because you share server with others. However, you compromise on the server performance and might face occasional downtime. If one website from your shared server is receiving heavy traffic, the others might not be accessible for some moments.
Still, for most people, shared hosting might be the best option just to maintain their presence on the internet. It depends on a business whether it needs a shared hosting or a dedicated server. Dedicated servers give you all the freedom and power, at higher costs of course + might require technical skills. For people in between of dedicated & shared hosting, there's a VPS server.
VPS is still somehow shared hosting, but you get a slice of the server that's only for you, like an apartment. VPS is like the hybrid version of hosting. It might be the answer when your website gets a traffic surge. That 'part' of the server is only to be used by you, hence it increases performance for your website.
Regarding costs, VPS costs slight more than a shared hosting plan, and much lesser than a dedicated server.
Depending on your needs and what type of a business you have, you might choose shared or VPS hosting. Faster loading times have a much positive impact on possible clients & customers. If you just want to maintain an online presence, then you might choose shared hosting. If you work is totally online, like a a big E-commerce store, then shared hosting is not for you.
Compare & buy shared hosting plans
Different providers have different pricing plans, depending upon features offered. Compare plans to see which one suits you most.