Not an expert but here is my take.
Yes it is possible.
Realise there is a reason why Apple hasn't made this as easy as Windows laptops.
The system/hardware of MacBooks is very tight to give it its form factor and uses the keyboard to support cooling. Not all models have a fan on board (yours hasn't for example).
So if it is a temporary need, fine. If you want to run this structurally, you might degrade your battery significantly (faster).
Terminal
Run sudo pmset -a disablesleep 1 [enter password], prevents all sleep including lid-closure
reverse with sudo pmset -a disablesleep
There are also apps like Amphetamine, that seem to work easy, but I have no experience with this app in particular.
Google a bit and read about the pro's and con's of doing this. I would not do this for a lengthy period, but yes for a project etc.
Hotspot connection also depends on power. Both devices can't be in battery saving mode.
You might need a "keep-alive" tool. I have a lot of disconnects when I tether to my iPhone.
I hope this helps