As all the others have said, all kids start in some type of rec classes. For many thats enough and they either don't have the time, interest or money to continue on. My gymmie started in a parent and me class at age 2 and went to rec classes(advanced) on/off until age 7 when the compulsory coach asked me why she wasn't in the pre-team program. Hey, it was their gym, I didn't even know about a pre-team program. She was moved to that and started competing as a L5 at age 9.
Certainly kids seem to improve their gymnastics in a pre-team program because it is more concentrated on learning the skills needed for competition and more time than a rec class. You need to discuss what basic skills are needed to move to your gym's pre-team program. Both gyms we've been at, pre-team has been invite only. I know when my gymmie moved to pre-team, she had back hip circle, pullover on bars, bhs(no spot), bwo, round off on floor. Most kids don't have that many beam skills or can vault. Thats really where pre-team picks it up a notch.