I always see two different "levels" of competitions: the expensive, cutthroat ones that are basically about winning, which personally I would not take a 5-year-old to; and competitions that are more 'friendly' and have a more cooperative atmosphere. I guess usually where I live they're called festivals and usually for older kids and/or orchestras. In my mind they're two distinct categories. Even if your child is planning for a career as a classical musician, some kids love that competitiveness of the first type and some kids seem to be negatively affected by it no matter how old they are. Like you said, kids really have to WANT that - if you're not sure if she would, I'd wait, myself.