At many BS competitions, they give out so many ribbons that almost everyone gets one. Ask the people running the comp whether that is true.
And you can compete even if you at or slightly below passing level.
At my rink, they pass almost everyone through BS 2. But perhaps half or so don't pass BS 3 the first time. The idea is that if you can't do good outside edges, you can't learn 3-turns and crossovers, and BS 4 is a frustrating waste of time. It also weeds out the kids who only practice at lessons, or who come too late (for whatever reason) to learn all the skills.
I'm not personally a fan of forcing a kid to do what they don't want to do when it comes to things like comps, but it's your choice.