Depends on the business. If the business relies entirely on the local community for their customers - ie no products that can be shipped or online services - then website hosting might be an unnecessary expense/headache that can be avoided.
For example, I would think a food-truck would benefit much more from social media than an actual website.
OR
If you're in the process of starting a business, have a great name and the domain is currently available and you want to lock it in, but you haven't officially launched yet, then this might be a good course of action.
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