Starts to read out inspiring literary work in competition (5)
I believe the answer is:
rodeo
'competition' is the definition.
(I've seen this before)
'starts to read out inspiring literary work' is the wordplay.
'starts to' indicates taking the first letters.
'inspiring' is an insertion indicator.
'literary work' becomes 'ode' (type of poem).
The initial letters of 'read out' is 'ro'.
'ro' going around 'ode' is 'RODEO'.
'in' is the link.
(Other definitions for rodeo that I've seen before include "Western show" , "Horse sporting event for cowboys" , "Drive in Beverly Hills" , "Cowboy riding contest" , "Show with broncobusters" .)