Shared hosting and VPS (Virtual Private Server) hosting differ primarily in resource allocation and control. Shared hosting involves multiple websites sharing the same server and its resources, making it a cost-effective choice for small sites with low traffic. However, this can lead to slower performance and limited control over server settings. In contrast, VPS hosting provides dedicated resources for your website, resulting in enhanced performance, faster loading times, and greater control through root access. VPS is also more secure, as your environment is isolated from other users, and it offers scalability to accommodate growth. Overall, shared hosting is ideal for beginners, while VPS hosting suits growing businesses with more demanding needs.