The purpose of this study is to identify the relationship between the survival of firms and the influence of agglomeration economies on firm location using a mixed effect Cox model considering random effects, given the industrial conditions of South Korea. Each agglomerative externality had a negative effect on the survival proportion of small startups except the related variety of the tertiary sector. However, the interaction effects between each externality and the location potential and among agglomerative externalities mostly played a complementary role to the survivability of startups; however certain effects reduced the survivability, and the effects were differentiated for each industrial sector. This study provides an advanced understanding of small firm performance after entry into the market in developing and developed nations.
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