This is survey study carried out to investigate the SSBs performance and examine the impact of environmental factors on SSBs performance in Kano and Sokoto states. Questionnaire methods were mainly used to collect data from the sampled SSBs. The data was analyzed using multivaried discriminant analysis and multiple regression technique in order to assess the level of performance as well as establish the significance of the relationship. The findings of this study clearly show that SSBs record low performance within the period studied and environmental factors have significant impact on their performance in Kano and Sokoto states. The study recommends that government should create enabling environment for both existing and potential investors in the sector, through provision of adequate infrastructures, financial support and formulation of policies favorable to SSBs.