Petty shops constitute an important part of the informal economy in semi-urban and rural regions of India. In Kamalanagar under the Chakma Autonomous District Council (CADC), petty shops play a significant role in providing essential commodities, generating self-employment, and supporting local trade networks. This study examines the socio-economic profile of petty shop owners, sources of capital, income and expenditure patterns, and the major challenges affecting the sustainability of petty shops. The research is based on primary data collected from 50 petty shop owners through structured questionnaires and personal interviews conducted between August and September 2025. The findings reveal that most petty shops are family-owned and self-managed enterprises depending mainly on personal savings. Poor infrastructure, low customer demand, and limited government support were identified as major challenges. The study suggests improving infrastructure, enhancing access to micro-credit, and providing business training to strengthen petty shops and promote inclusive economic development in Kamalanagar.