You can make a really cozy place out of this space with not a huge budget
You should think more of adding storage dpaces. Look up some ideas online, maybe use pintrest as a source of inspiration or even reddit
Storage can (and should) be used in the vertical space. You can have plenty of storage options. If you will organize your things better the space would look bigger and cleaner.
Also you can have your tv mounted on the wall and benefit from some extra space in the living room.
Solution: storage! Lots of storage!
If you don’t want to invest too much, ikea has some nice storage furniture made of foldable materials. You can always take them with you easly if you move to another place.
Edit: just wanted to say i’ve never seen such a small front door haha