The township market makes the largest contribution to liquor sales in South Africa, but growth, sustainability and success of this market is unsatisfactory. The sector needs assistance to improve their performance. This paper aims at identifying the critical skills and knowledge specific to township liquor retailing. Data was collected through qualitative semi-structured interviews; participants included representatives from provincial government, the top three liquor manufacturers and distributors, and forty liquor retail owners from Khayelitsha and Mitchell's Plain townships. The findings reveal that skills and knowledge (customised to suit township are the foundation for better management of these businesses). The critical skills and knowledge are Operating Capital, Operations Management and Human Resource. Township liquor retailers fail as a result of mistakes that could be avoided through acquiring the right skills and knowledge. The current government and supplier skills and knowledge programmes should be improved and tailored to suit the profile of these entrepreneurs.