A perfect way to answer the question would be to discuss first the concept of shared hosting as it relates with dedicated hosting in order to establish the distinction between the two levels of web hosting.
Websites that have more intense traffic generally require more than what average shared hosting account can offer. Shared hosting is a perfect entry point to the Internet for you and your website. There will come a time that the business and even personal websites will experience the limitations of a shared hosting in terms of bandwidth and disk space. Shared hosting does not offer the same level of flexibility or security that managed and unmanaged dedicated hosting offers.