Hosting a site on a cheap shared hosting is not a problem as long as we use a proper CDN like @bunnycdn .
Do not worry about #SEO with cheap hosting. Worry only about how best you can grow your business with minimum spends. All that is important is how best you can provide content that is of value to your customers. You can always upgrade once the business grows.
If cheap hosting are used by spammy networks, it is the duty of the highly profitable search engines like Google to ban them. Just because a good business is using a cheap hosting, a search engine cant devalue/ban a website for that.
Do what is affordable to you. Ignore what the search engine algorithm will do. These search engine companies have no right to value/devalue sites based on where they host. It means partiality. If their algorithm is so good, they would surely understand and differentiate between spammy sites and your site on shared hosting.
If affordable, You can buy dedicated IP.
Remember, Not everyone will have the money to host on costly servers.
Grow your business based on what your customer expects and not on what Google or other search engines expects.