The aim of the study is to indicate the effects that business location has for Small Medium and Micro Enterprises located in the townships, and indicate how that affects their performance, access to market and their development as perceived by SMME owners/ operators. There is a necessity to understand the current dynamics of South Africa's small businesses located in the township. The paper contends that SMMEs located in the townships most of them came to being there as a result of the apartheid system that forced black people to be settled in townships, most of them are not located in the townships by choice, townships became a place where black people created their livelihood. Location of a business should be given an urgent consideration as a crucial factor; it has a potential of affecting the business positively. Successfulness of business is strongly linked to making the right location decisions, but in this case, those located in the townships were not given an opportunity to choose their business location. Regardless of the circumstances, they must be able to work on making it a success. South Africa before receiving its freedom, it was ruled by a system called Apartheid; it is also referred to as Apartness. The Apartheid government used this system to separate different racial groups and their development. Black people were forcefully relocated to areas that are undeveloped, areas that are far from the cities and their workplace. They were forced to leave their birthplace and be placed in these areas that were called townships, generally located on the periphery of towns and cities.