Innovation and entrepreneurship are the cornerstones of contemporary economics. Recent history has shown that they are also among the most effective tools in overcoming disasters and crises. Post-WWII Japan, New Orleans after Hurricane Katrina, and the COVID-19 pandemic all demonstrated how entrepreneurship and innovation aid recovery and growth and strengthen communities and economies after disasters. The State of Israel has experienced one of the most devastating disasters in its short existence, a brutal terror attack on its southern region that took place on October 7, 2023. In order to support the nation’s healing process and revive the affected region’s economy and shattered communities, the Israeli government must enlist its considerable power of innovation and entrepreneurship.