Should I go for free OR cheap WordPress hosting?
When you are purchasing a hosting package which is specifically designed for a WordPress site, you are looking for an environment with the best quality and well optimized to load your WordPress site optimally. You should confirm that the package has no restriction to run your site. If free/cheap package suits your requirements, you should check their all terms carefully and test their service before making your website live on their server.
You can go for any hosting which provide free or paid but they have to provide basic requirements like php version disk space etc. Few providers provide Free hosting with limited facilities. Like you have to manually install wordpress and many other. In paid hosting you will provide one click wordpress installation.
It depends on your website requirement, But if you are a startup then you should host your website with a shared or VPS server. Free Hosting is not a good option for you and your business. With free hosting, you can easily host only WordPress websites.