This is so timely for me. I am similar to your daughter. I perceive myself as being competitive with myself instead of others. A week ago, I had the chance to audition for a solo in a Christmas program that I am involved in. I "chickened out" & was upset with myself for the evening. What I eventually realized was that I was not ready for the experience if I wasn't even comfortable auditioning.
Your daughter simply may have felt too overwhelmed by the unknown--wondering what might happen if she did go to the bee. Of course, when she found out there was fun involved she understandably focused on that, forgetting her fear of public speaking for the moment.
I would use it as a teachable moment & show that things that are scary can also be fun. You could even do something together that illustrates the point. Maybe read a book at the library during children's hour?
