While there are benefits to a dedicated server web host provider, most small business websites can get by with a less expensive shared hosting provider. We use a private label Go Daddy host that has great service, offering both shared and dedicated web hosting.
There are advantages to using a hosting provider that offers both shared and dedicated services (like ours). If you decide down the road to change to a dedicated web host environment, making this transition within the same web host company will be easier and less expensive.