Can I sell the game I make in the Free Edition because since I can't afford a license that would be the only way to get one, by selling the small games I make. And one more thing, when is the next competition - I would love to enter, might the the only way for me to get a license.
No, you require a license. If everyone could plead a case Scirra would have tens of thousands of people trying to grab free copies. if you sell a game you make in the free edition you're breaking the EULA and are breaking the law. Wait until you can afford a license, then sell the game.