While I believe this to be a duplicate of a large number of questions, I couldn't find a single one with a satisfactory answer.
So I'll quote from this article:
Manually create a virtual AP with netsh
If you want to experiment with the wireless Hosted Network feature
with text commands, click the Start button, enter “cmd” and hit Enter.
Once the Command Prompt window appears, you can enter the following to
set the network details:
netsh wlan set hostednetwork mode=allow ssid=YourVirtualNetworkName key=YourNetworkPassword
Of course, replace the SSID and key placeholders with your desired
network name and WPA2-PSK encryption key.
Before you enable the Hosted Network, you can configure the real
network adapter to share its Internet access using the Internet
Connection Sharing (ICS) feature of Windows. This way people
connecting to the virtual AP will receive Internet access. You can
leave the Command Prompt open so you can start the Hosted Network
To enable ICS, navigate through the Control Panel or Network and
Sharing Center to bring up the Network Connections window. Then
right-click the network adapter that’s connected to the Internet and
select Properties. Then select the Sharing tab, check the Allow other
network users to connect through this computer’s Internet connection,
choose the Hosted Network Connection from the drop-down listbox, and
Now return to the Command Prompt and enter the following to enable the
netsh wlan start hostednetwork
To manually turn the Hosted Network off, enter the following:
netsh wlan stop hostednetwork
To see the Hosted Network details (see Figure 3), including the MAC
addresses of connected users, enter the following:
netsh wlan show hostednetwork
To change the WPA2-PSK key, you can enter the following:
netsh wlan refresh hostednetwork YourNewNetworkPassword
Now others nearby should see the Hosted Network appear in their list
of available wireless networks. They can connect like normal and enter
the encryption key when prompted.
Remember, you’ll have to manually start the Hosted Network again, if
desired, after rebooting the computer. Most importantly, remember
sharing isn’t blocked; make sure you only invite people you trust.
If I remember correctly, this doesn't work with some older WiFi chipsets, so it might depend on the chipset in the WiFi dongle. There should be no difference between a USB WiFi card (external) and a PCI WiFi card (internal).