Small firms need to keep a closer eye on staff using internet bandwidth for non-work purposes, whether from the office or elsewhere.

According to a study commissioned by Easynet Connect, 32% have no formal internet policy at all while only 18% impose a complete ban on personal use of the internet at work. Almost half (49%) limited it to a break or at lunchtime).

Aside from the security implications of having unrestricted internet access, Quocirca - which carried out the report - argues that bandwidth is becoming an increasingly precious business commodity and many companies could find the resources available to them hampered by personal use.

"As the internet has become a strategic business resource, companies need to identify suitable policy controls and protective measures to ensure they have sufficient bandwidth to cope with business needs," added Rob Bamforth, principal analyst at Quocirca and author of the report.

"Those allowing personal use of the corporate internet connection by employees must understand its impact and plan their capacity and services to accommodate these requirements."

The vast majority (93%) of employees interviewed said they just used the internet for general web-browsing while 52% admitted using social networking sites and 29% instant messaging.

"As a rising number of core business applications become web-based, it is important that personal internet use does not compromise the performance of these applications," said Chris Stening, managing director of Easynet Connect.

"However, it is also important for small firms to strike a balance with their employees. Businesses must analyse their internet connectivity requirements and develop a policy that doesn't compromise their business' core online applications, while accommodating for their employees legitimate internet needs."

The research found companies in the south-west and south-east (42% and 41% respectively) were least likely to have a formal internet usage policy, while those in Wales (63%) tended to limit use to a certain time of day.

Companies in the north-west were most likely (33%) to impose a complete ban.