What’s the difference between shared hosting and dedicated servers?

[KaiWaters]

The basic difference is very straightforward. A shared hosting plan is used by multiple businesses at one time while the dedicated servers are meant for one business only. With a shared hosting your website speed can be compromised because many users will be using it but with a cheap dedicated server, you can enjoy the dedicated speed and use it to grow your website more. I emphasize on having a dedicated server because it makes your website accessible and grants you better security whenever you need.

[1hostweb]

I agree with you that dedicated server is better than shared hosting. But given the option people who are looking for cost effective hosting and starting a new website or blog, then shared hosting will do.
Basically depends on what website the customer wants to host. For small websites or blogs shared hosting will do.